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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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Rating Profile: Baa3[S]/BBB-[N]
- Op Margin rose to 18.6% at FY23 from 18.2% in 2022; Moody’s see a small improvement in 2024 but expect it to remain below the 20.3% level seen in 2019 and against upward/downward pressure thresholds of 20%/15%.
- RCF to Net Debt improved to 25% from 23% in 2022 against upward/downward pressure thresholds of 20%/15%. Moody’s-adj gross debt/EBITDA fell to to 4.1x in 2023 from 5.1x in 2022 with further improvement in these ratios expected over the next 12-18m.
- The narrative around this credit is improving and an outlook upgrade from S&P is likely if the sentiment in this Moody’s assessment is anything to go by. The equity reaction to their broadly in-line FY23 results to us implies that the market had been expecting a resumption in dividends though the decision not to resume distributions speaks to management’s commitment to de-risking. Cash on hand is adequate to cover maturities of their EUR 24s and EUR 28s.
- Like WPP, the JCDecaux is artificially steep on the back of CSPP. Even so, their three EUR bonds stream wide of the EUR BBB- Comms curve and we see scope for potential tightening and flattening at the longer end as fallen angel risks retreat. Credit spreads have performed well YTD though have been largely muted vs. peers since reporting earnings.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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