S&P affirms the BBB-/A-3 rating and raises the outlook on METRO from previously negative to stable
The rating agency Standard & Poor's has published a credit research update on METRO AG. S&P affirms the BBB-/A-3 rating and raises the outlook on METRO AG from previously negative to stable due to fast sales recovery after the pandemic lockdowns and better-than-expected debt metrics:
"Food wholesaler METRO AG's sales have recovered better than we anticipated in May 2021, nearly reaching prepandemic levels in recent quarters and leading us to expect a decrease in leverage to below 3.5x in fiscal 2022 (ending Sept. 30)." S&P’s report also takes into account the plans and ambitions of METRO's new sCore strategy. The report says: "The stable outlook reflects our expectation that Metro should achieve low- to mid-single-digit sales growth and sustain its operating margins."