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Casino Guichard-Perrachon SA -- Moody's downgrades Casino's ratings to B1; negative outlook

Moody's Investors Service ("Moody's") has today downgraded French grocer Casino Guichard-Perrachon SA's (Casino) long-term corporate family rating (CFR) to B1 from Ba3 and its probability of default rating (PDR) to B1-PD from Ba3-PD. Moody's has also downgraded Casino's senior unsecured long-term ratings to B1 from Ba3, its senior unsecured MTN program rating to (P)B1 from (P)Ba3, the deeply subordinated perpetual bonds' rating to B3 from B2. "We believe that the debt restructuring of Casino's main shareholder Rallye and of its controlling holding companies creates additional uncertainty at a time when trading conditions in the French retail market remain highly challenging and increases the execution risk of Casino's deleveraging," says Vincent Gusdorf, a Moody's Vice President -- Senior Credit Officer and lead analyst for Casino.