...Fitch upgraded NH Hotel Group S.A.'s (NH) Long-Term Issuer Default Rating (IDR) to 'B+' from 'B' in March 2018. The Outlook is Positive. The upgrade reflects a marked improvement in NH's operating performance and leverage metrics. The improvement capex plan deployed since 2015, coupled with a more efficient cost structure and effective pricing management, has enabled NH to reposition its offer along a more upscale segment, reduce costs and increase profit margin. NH has also reduced its gross debt levels. The Positive Outlook reflects our expectation of further profitability and free cash flow (FCF) improvements over the next two years, as well as scope for further deleveraging towards the 'BB' territory. This is supported by the conversion of the EUR250 million convertible bond which has enhanced the group's capital structure. Conversely if NH chooses to allocate its operating cash flow generation to larger capex, M&A or shareholder returns, the rating would likely remain at 'B+'....
