The rating agency has lowered the perspective of the Spanish bridal fashion company due to a low performance of the company compared to the previous estimations.
Moody’s downgraded Pronovias outlook. The rating agency has changed the outlook of the Spanish company’s to negative from stable, due to the current underperformance of the company versus previous expectations.
“The rating action reflects the company’s current underperformance versus our expectations in the ten months to October 2019, and the deterioration of credit metrics, that now weakly position the company in the B3 rating category”, said Guillaume Leglise, Moody’s lead analyst for Pronovias.
The rating agency expects that Pronovias’ leverage will remain high over the next 12 to 18 months, and an Ebidta decline of 4.2% for the year-to-date October 2019 to 36.6 million euros from 38.2 million euros during the same period in 2018.
Pronovia’s ebitda in 2018 stood at 35 million euros, down 22% from the previous year, while the gross margin ranged between 17% and 20%, compared to 24.7 % of 2017. The group’s debt, meanwhile, is increasing, going from a leverage rate of 6.8 times ebitda to between 7 and 7.5 times ebitda.
The group, controlled by BC Partners since 2017 and led by Amandine Ohayon, has rearranged its team in the last year and signed Amanda Pérez as the new head of retail experience in all its stores.