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Maxeda (B3 Neg/NR/B Neg (Now)) Fitch moves to neg. outlook (private)

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The Benelux region DIY retailer (parent of Brico and Praxis) is now on neg. outlook at both raters. The €470m 26s are at €80.5/18.7%.

  • trading underperformance (FY25 sees -1.6% fall in sales after -3.7% in FY24), weather related impacts and uncertain consumer demand pick-up are Fitch's concerns.
  • does not see downgrade thresholds being tested (sees gross 7.4x by year FY25) but has concerns for the refinancing of the RCF due in April 2026 and single €470m bond due in Oct - including costs/FCF impact (FCF already close to breakeven).The single public bond is a secured €470m Oct line issued at 5.875% in 2020.
  • Positives; it expects EBITDA margin to expand to 5% in FY25-26 (from 4.8%). Still below pre-pandemic 6.5% though. It has Belgium market share at 45% and Netherlands at 22% and ~40% of stores are franchised.
  • It sees 53% recovery under a going-concern and 10% administrative claim. €65m RCF is super senior to bonds and Fitch assumes fully drawn on default. - Moody's moved to neg. in June last year/likely prone to a downgrade there now.
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The Benelux region DIY retailer (parent of Brico and Praxis) is now on neg. outlook at both raters. The €470m 26s are at €80.5/18.7%.

  • trading underperformance (FY25 sees -1.6% fall in sales after -3.7% in FY24), weather related impacts and uncertain consumer demand pick-up are Fitch's concerns.
  • does not see downgrade thresholds being tested (sees gross 7.4x by year FY25) but has concerns for the refinancing of the RCF due in April 2026 and single €470m bond due in Oct - including costs/FCF impact (FCF already close to breakeven).The single public bond is a secured €470m Oct line issued at 5.875% in 2020.
  • Positives; it expects EBITDA margin to expand to 5% in FY25-26 (from 4.8%). Still below pre-pandemic 6.5% though. It has Belgium market share at 45% and Netherlands at 22% and ~40% of stores are franchised.
  • It sees 53% recovery under a going-concern and 10% administrative claim. €65m RCF is super senior to bonds and Fitch assumes fully drawn on default. - Moody's moved to neg. in June last year/likely prone to a downgrade there now.