Research Update: Airline Caterer gategroup Upgraded To 'B+' On Clarity On Financial Policy; Off CreditWatch Positive; Outlook Stable

We have reassessed the financial policy of gategroup Holding AG (gategroup) because, following its sale by the financially distressed HNA Group, the group is jointly controlled by private equity firm RRJ Capital and Singapore state investment fund Temasek. We expect that gategroup will focus on acquisitive growth to expand its global footprint, while maintaining S&P Global Ratings-adjusted debt to EBITDA below 5.0x. We are therefore raising the long-term issuer credit rating on gategroup to 'B+' from 'B-'. At the same time, we removed the rating from CreditWatch with positive implications. The stable outlook reflects our expectations that gategroup will remain the market-leading independent airline caterer and will expand via strategic acquisitions, with a financial policy to maintain weighted-average adjusted debt

...- We have reassessed the financial policy of gategroup Holding AG (gategroup) because, following its sale by the financially distressed HNA Group, the group is jointly controlled by private equity firm RRJ Capital and Singapore state investment fund Temasek. - We expect that gategroup will focus on acquisitive growth to expand its global footprint, while maintaining S&P Global Ratings-adjusted debt to EBITDA below 5.0x. - We are therefore raising the long-term issuer credit rating on gategroup to 'B+' from 'B-'. At the same time, we removed the rating from CreditWatch with positive implications. - The stable outlook reflects our expectations that gategroup will remain the market-leading independent airline caterer and will expand via strategic acquisitions, with a financial policy to maintain weighted-average adjusted debt to EBITDA below 5.0x and adequate liquidity coverage over the next 12 months....

Research Update