Morrisons - comments

The rationale for the ratings move at Morrisons does not impact our view on the credit. Fitch has moved the default rating from BB- to B+, with the agency highlighting the same points we made in our analysis regarding cost inflation. The rating anticipates around GBP300m of debt repayment via cash sweeps between 2023-2025 (plus GBP100m voluntary repayment). Our expectations for significant free cash flow and debt repayment is weighted more towards 2026-2027.