Retailer Casino's Shares Fall On Interim Dividend Cancellation, Rating Cut
Casino Group's shares fell on Wednesday, after the indebted French supermarket retailer cancelled its interim dividend and suffered a new credit ratings downgrade.
Casino's shares were down 3.1%, while the shares of Casino's parent holding company Rallye also fell 1%.
Late on Tuesday, Casino said it would not pay an interim dividend as it would be focusing instead on cutting its debts, while S&P also cut its credit ratings on Casino to B from BB-.
In a statement, the group said that the downgrade 'has no impact on the availability or cost of the Group's existing financial resources'.
It added that it confirms the 'priority given to pursuing its debt reduction strategy and, in this context, the Board of Directors, which met today, decided not to pay an interim dividend in 2019'.
Last week, a Paris commercial court placed Rallye, the parent company of Casino, under protection from its creditors for at least six months.