The rating on Switzerland-based provider of products, services, and solutions to airline passengers, gategroup Holding AG (gategroup), reflects our assessment of the company's business risk profile as "fair," and its financial risk profile as "significant." In our view, the financial risk profile is constrained by gategroup's highly indebted capital structure and risks related to gategroup's continuing acquisitive growth strategy, which we believe may weigh on free cash flow levels and limit the company's ability to reduce its debt. These weaknesses are partly mitigated by the company's flexible cost structure and low capital requirements, which have underpinned a demonstrated resilient operating performance. The business risk profile is limited by gategroup's exposure to the cyclical and price-competitive commercial airline industry, which we
