Fitch affirms Accor

Fitch Ratings said it affirmed Accor SA's long-term issuer default rating and senior unsecured rating at BBB and short-term issuer default rating at F2.

The outlook for the long-term issuer default rating remains stable.

"Accor's rating reflects the group's strong position as the largest European hotel chain with operating profits principally stemming from the economy/mid-scale segment, as well as the leading position of its high margin and cash flow-generative service business," Johnny Da Silva, a director at Fitch, said in a written statement.

"Accor's credit metrics are improving and the group's operating performance continues to benefit from positive average room rate growth and a more segmented approach and flexible operating structure for its hotel portfolio," Da Silva said.

The issuer's lease-adjusted net debt-to-EBITAR ratio fell to 3.4 times in fiscal 2006 from 4.1 times in 2005.

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