Casino Cancels 2019 Interim Dividend On Debt-Cutting Efforts

   By Max Bernhard

Casino Guichard-Perrachon SA (CO.FR) said late Tuesday that its board decided not to pay a 2019 interim dividend due to efforts to cut debt and after Standard & Poor's downgraded the French company's rating.

"The group confirms the priority given to pursuing its debt reduction strategy and, in this context, the board of directors, which met today, decided not to pay an interim dividend in 2019," it said.

Casino said Standard & Poor's downgraded its rating to B from BB- and placed the rating on negative watch, after its parent Rallye SA (RAL.FR) went into bankruptcy protection. The cut doesn't affect availability or costs of Casino's existing financial resources, it said.

Casino confirmed its financial outlook, continuing to expect free cash flow in France before dividends and financial expenses of at least 500 million euros ($558.9 million). It forecast trading profit for its French retail business to grow at least 10% and disposals of at least EUR2.5 billion by the first quarter of 2020.

Write to Max Bernhard at max.bernhard@dowjones.com; @mxbernhard

(END) Dow Jones Newswires

May 29, 2019 02:02 ET (06:02 GMT)

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