Fitch upgrades Elior

Fitch Ratings said it upgraded Elior SA’s (Elior) long-term issuer default rating to BB- from B+.

The ratings of Elior’s senior secured credit facilities and Elior Finance & Co. SCA’s €350 million senior secured notes also were upgraded to BB+ from BB-.

All of the ratings were removed from Rating Watch positive.

The outlook is stable.

The upgrades reflect the recent completion of a €954 million initial public offering by the group, which has been used partly to repay secured bank and bond debt, Fitch said.

The upgrades reflect enhanced recoveries after the IPO, the agency said.

Elior’s geographical concentration in France and other southern European countries remains a constraining factor on the rating relative to its closest peers, Compass and Sodexo, which maintain broader geographical diversification, Fitch said.

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