Chinese conglomerate HNA Group has announced a tender offer to acquire publicly listed Switzerland-based airline solutions provider gategroup Holding AG for about 1.4 billion Swiss francs (about €1.3 billion) in cash. HNA's strategy and likely financial policy for gategroup is uncertain at this stage. However, we consider that private ownership may increase gategroup's tolerance for higher leverage and lead to more aggressive financial policies such as higher shareholder returns. We are therefore placing our 'BB-' long-term corporate credit ratings on gategroup on CreditWatch with negative implications. The CreditWatch placement reflects the possibility that we could lower the rating if the transaction proceeds as we expect. On April 20, 2016, Standard&Poor's Ratings Services placed its 'BB-' long-term corporate credit
