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Fnac Darty (FNACFP; NR/BB+ Neg/BB+ S) Fitch Affirms

CONSUMER CYCLICALS

Fitch has affirmed it at BB+ Stable, not a surprise given both have commented since 1H results mainly to weigh in on {UNIR IM Equity} acquisition (was cash light for Fnac).

We will need to circle back on the co; 29s price to par call in 3.5yrs at OAS +200/4.7%. As we mentioned last week if Fnac can show some signs of a recovery (we didn't see it in 1H results) then it will start to look a lot better than upstream (manufacturers not retailers) home appliance and IG-rated co's Electrolux and Whirlpool who are running quiet levered BS's through similar cycle weakness.

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