09 March 2016 by lberuti
Ahead of the ECB meeting tomorrow, it was a fairly quiet session in creditland and indices mainly traded sideways in a fairly narrow range. COFP ( Casino Guichard Perrachon SA ) was one of the actively traded names though. The company came once again under fire from Muddy Waters which published a report yesterday reiterating their view that Casino is using financial engineering to mask a sharply deteriorating core business and that their main shareholder RALFP ( Rallye SA ) has too much debt. That set the tone for a weak session, despite COFP announcing this morning that the first 2 months of the year in France were very good and confirming their full year 2016 guidance. More significantly to credit investors, during its earning release, the retailer dropped its commitment to investment grade rating, despite reiterating this just after S&P put them under Credit Watch Negative earlier in the year. The 5 year risk premium finished the session 15bps wider at 385bps.