Fitch lowers Elior notes, view to positive

Fitch Ratings said it affirmed Elior SA’s long-term issuer default rating at BB-.

The agency also downgraded Elior’s senior secured credit facilities and Elior Finance & Co. SCA’s €350 million senior secured notes to BB from BB+.

The outlook was changed to positive from stable.

The ratings continue to reflect Elior’s large scale, broad product offering, strong customer and business diversification and high barriers to entry inherent in the catering sector, Fitch said.

The positive outlook is based on an expectation that Elior will generate improved EBITDA and maintain steady profit margins, driven by organic growth, particularly in the fast-growing U.S. transport concessions business, the agency said.

The ratings are constrained by the company’s still relatively high leverage, despite an initial public offering in 2014, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.