The rating affirmation reflects Scope’s expectation that leverage will reduce to below 2x in 2024, driven by the strict cost control programme, which is helping to maintain operating margins.

The Outlook change to Stable from Negative is driven by Fnac Darty’s successful deleveraging in 2023, thanks to the better-than-expected results in H2 2023 and the strict cost control programme maintained throughout the year. The Outlook change is also motivated by the decision of the High Court of Justice (UK) in favour of Fnac Darty S.A. with an additional EUR 40m to be received in the first quarter of 2024 in relation to the 2022 Comet group litigation. Finally, the improvement in macroeconomic conditions with lower inflation expected from H2 2024, is also driving the revision of the Outlook, which will have a moderately positive impact on Fnac’s sales and EBITDA.

This monitoring note does not constitute a credit rating action, nor does it indicate the likelihood that Scope will conduct a credit rating action in the short term. On 23 February 2024, Scope affirmed the BBB issuer rating and changed the Outlook to Stable from Negative. Scope has also affirmed its BBB rating for the senior unsecured debt issued by Fnac Darty S.A. along with S-2 short term debt rating.

The latest information on the credit ratings in this monitoring note along with the associated rating history can be found on www.scoperatings.com.

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