France-based lodging group Accor S.A. announced the acquisition of Mantra, one of Australia's largest hotel and resort marketers and operators for a purchase consideration of A$1.3 billion (€0.9 billion). If the transaction closes as announced, barring any sale of AccorInvest in the meantime, we think it would cause Accor's adjusted leverage to exceed our targets for the current credit rating. At the same time, Accor remains in discussions with potential investors for the sale of a majority stake in AccorInvest (Booster transaction), which would result in significant cash proceeds. However, the anticipated signing of this agreement has been delayed to year-end 2017 and, at this stage, there is no certainty an agreement will be reached. We are placing our 'BBB-/A-3'
