Research Update: Airline Caterer gategroup Holding AG Upgraded To 'B-' On Improved Leverage And Profitability, Outlook Positive - S&P Global Ratings’ Credit Research

Research Update: Airline Caterer gategroup Holding AG Upgraded To 'B-' On Improved Leverage And Profitability, Outlook Positive

Research Update: Airline Caterer gategroup Holding AG Upgraded To 'B-' On Improved Leverage And Profitability, Outlook Positive - S&P Global Ratings’ Credit Research
Research Update: Airline Caterer gategroup Holding AG Upgraded To 'B-' On Improved Leverage And Profitability, Outlook Positive
Published Jan 28, 2025
8 pages (3950 words) — Published Jan 28, 2025
Price US$ 225.00  |  Buy this Report Now

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Abstract:

gategroup Holding AG's financial performance, as well as S&P Global Ratings' updated base-case forecast, point to improving EBITDA, free operating cash flow (FOCF) generation, and credit metrics in 2024 and 2025, supported by the resilient demand for air travel and management's efforts to improve its inflation-passthrough coverage and cost controls. Supported by higher volumes, abating inflationary pressure, price increases, and productivity gains, we believe the company has likely improved its S&P Global Ratings-adjusted debt to EBITDA to the 7.5x-7.6x range in 2024, from 12.2x in 2023, which outpaces our previous expectations. We now forecast gategroup's S&P Global Ratings-adjusted debt to EBITDA will fall toward 6.5x in 2025 and likely remain in the 6.0x-6.5x range in 2026. Therefore, we raised our

  
Brief Excerpt:

...- gategroup Holding AG's financial performance, as well as S&P Global Ratings' updated base-case forecast, point to improving EBITDA, free operating cash flow (FOCF) generation, and credit metrics in 2024 and 2025, supported by the resilient demand for air travel and management's efforts to improve its inflation-passthrough coverage and cost controls. - Supported by higher volumes, abating inflationary pressure, price increases, and productivity gains, we believe the company has likely improved its S&P Global Ratings-adjusted debt to EBITDA to the 7.5x-7.6x range in 2024, from 12.2x in 2023, which outpaces our previous expectations. We now forecast gategroup's S&P Global Ratings-adjusted debt to EBITDA will fall toward 6.5x in 2025 and likely remain in the 6.0x-6.5x range in 2026. - Therefore, we raised our issuer credit rating on gategroup to 'B-' from '###+'. - The positive outlook reflects the possibility that we will upgrade the company in the next 12 months if it refinances its October...

  
Report Type:

Research Update

Issuer
gategroup Holding AG
Sector
Global Issuers
Country
Switzerland
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Airline Caterer gategroup Holding AG Upgraded To 'B-' On Improved Leverage And Profitability, Outlook Positive" Jan 28, 2025. Alacra Store. May 04, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Airline-Caterer-gategroup-Holding-AG-Upgraded-To-B-On-Improved-Leverage-And-Profitability-Outlook-Positive-3317733>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Airline Caterer gategroup Holding AG Upgraded To 'B-' On Improved Leverage And Profitability, Outlook Positive Jan 28, 2025. New York, NY: Alacra Store. Retrieved May 04, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Airline-Caterer-gategroup-Holding-AG-Upgraded-To-B-On-Improved-Leverage-And-Profitability-Outlook-Positive-3317733>
  
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