Research Update: Hotel Owner And Operator AccorInvest Group Assigned 'B' Rating; Outlook Stable; Notes Rated 'B+'

AccorInvest Group S.A. (AIG) issued €750 million senior secured notes, whose proceeds were used to redeem AIG's outstanding bridge facility and make partial repayments under its outstanding term loans A and B. High financial leverage and limited financial flexibility under the terms of the debt documentation constrain the group's creditworthiness in the short term. That said, the €1.7 billion disposal plan, combined with good performance and improved profitability, should allow the company to strengthen its capital structure and operations over the next 18 to 24 months and set the basis for future growth. We assigned a 'B' long-term issuer credit rating to AIG and a 'B+' issue rating with a '2' recovery rating, to the company's €750 million senior secured

...- AccorInvest Group S.A. (AIG) issued 750 million senior secured notes, whose proceeds were used to redeem AIG's outstanding bridge facility and make partial repayments under its outstanding term loans A and B. - High financial leverage and limited financial flexibility under the terms of the debt documentation constrain the group's creditworthiness in the short term. That said, the 1.7 billion disposal plan, combined with good performance and improved profitability, should allow the company to strengthen its capital structure and operations over the next 18 to 24 months and set the basis for future growth. - We assigned a 'B' long-term issuer credit rating to AIG and a 'B+' issue rating with a '2' recovery rating, to the company's 750 million senior secured notes due 2029. - The stable outlook reflects our expectations that AIG will maintain S&P Global Ratings-adjusted debt to EBITDA of 5.5x-6.0x (excluding preference shares) and positive free operating cash flow (FOCF) after leases over...

Research Update