Switzerland-based airline solutions provider gategroup Holding AG (gategroup) reported weaker preliminary financial results for 2012 than we had anticipated, primarily due to the ongoing weak conditions in the European airline industry. The weaker-than-expected operating performance has led us to revise downward our forecasts. The company's credit protection measures have weakened, and we believe that they could remain under pressure in 2013. We are affirming our 'BB' corporate credit rating on gategroup and revising the outlook to negative from stable. At the same time, we are affirming our 'BB' issue rating on the €350 million 6.75% senior unsecured notes due 2019 issued by wholly-owned subsidiary gategroup Finance (Luxembourg) S.A. The negative outlook reflects our view that gategroup's credit profile could remain
