PARIS, Sept. 10 (Reuters) – The securities Edenred and Casino accuse Thursday the two largest declines in the SBF 120 index due to their high exposure to Brazil, whose sovereign rating was lowered yesterday by Standard & amp ; Poor’s.
At 9:40, Edenred lost 4.24% to 16.95 euros and Casino 2.92% to 53.17 euros, while the SBF 120 index yields only 0.7%. Both titles respectively decreased by 26.3% and 30.5% since the beginning of the year.
The results of Casino have declined sharply in the first half in Brazil, its first market where it realizes about 40% of its sales and where its subsidiary GPA suffers from the crisis in the country.
Edenred, which was also observed in the publication of its half year that the economic climate had deteriorated in Brazil has already been sanctioned in August by the market due to its significant exposure to the economy
Standard & amp. Poor’s lowered Wednesday Brazilian BBB- to BB +, the highest level in the category of debts deemed speculative (“junk”), which will result in a higher cost of borrowing for the government and companies operating in the country.
Such a decision was expected by many observers given the rapid deterioration of the Brazilian economy, now in recession and public finances, but most of them did not think it would be so fast. (Jean-Michel Belot, edited by Benjamin Mallet)
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