Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Debt-ridden retailer Casino relegated from key French equity index

Published 07/09/2023, 19:08
Updated 07/09/2023, 19:10
© Reuters. FILE PHOTO: A logo of French retailer Casino is pictured outside a Casino supermarket in Nantes, France, July 27, 2023. REUTERS/Stephane Mahe/File Photo

By Sudip Kar-Gupta

PARIS (Reuters) - Debt-ridden French supermarket retailer Casino will be excluded from Paris' SBF-120 equity index of major companies, said markets operator Euronext on Thursday, dealing another potential blow to the company.

Euronext said Casino's exclusion from that index would take place after markets close on Sept. 15, and it would become effective on Sept. 18.

If a company falls out of a key equity index, it can reduce demand for the stock from investment funds that track the index or invest in the index.

Casino's shares have slumped by around 80% since the start of 2023. The stock closed down 1.7% on Thursday, while the stock price of Rallye - the holding company behind Casino - fell 19.9%.

Casino has been hit by fierce competition in the French supermarket sector, and it was forced to restructure after years of debt-fuelled deals started to weigh on its balance sheet.

In July, Casino agreed upon a debt restructuring deal with creditors led by Czech billionaire Daniel Kretinsky.

Nevertheless, last month credit rating agency Standard & Poor's (S&P) cut its rating on Casino to 'D' to denote a likely default, after Casino failed to pay the interest on a bond.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.