June 11, 2020 / 7:27 AM / a month ago

Europcar shares slide after suffering downgrade from Moody's

FILE PHOTO: The logo of car rental company Europcar is seen outside Paris Charles de Gaulle airport in Roissy-en-France during the outbreak of the coronavirus disease (COVID-19) in France May 19, 2020. REUTERS/Charles Platiau

PARIS (Reuters) - Europcar (EUCAR.PA) shares slumped on Thursday after credit rating agency Moody’s downgraded the French car hire company.

Europcar’s shares were down 11.4% by 0710 GMT, with the stock having lost 53% in value since the start of 2020.

Late on Wednesday, Moody’s cut its rating on the company to Caa1 from B2.

“Today’s rating action reflects the longer lasting effect that the coronavirus outbreak will have on car rental demand, which will result in Europcar Mobility Group’s credit metrics and corporate free cash flow remaining weak through at least 2021”, said Eric Kang, a Moody’s Vice President-Senior Analyst.

Reporting by Sudip Kar-Gupta; Editing by Catherine Evans

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