Fitch revises Dufry to stable

Fitch Ratings said it revised the outlook on Dufry AG's issuer default rating to stable from negative and affirmed the rating at BB-.

The agency also affirmed Dufry Finance SCA's senior notes at BB-.

Fitch said the outlook change reflects its view as regards the success of Dufry's integrated transformational acquisitions and our expectations of sustainably improving free cash flows and margins; these factors should drive de-leveraging toward 5 times on a funds from operations (FFO)-adjusted gross basis in the medium term, a level the agency considers more comfortable with the rating given the cyclical demand profile in line with the economic cycle.

The action critically relies on management's rigorous execution of operational improvement measures and its commitment to its target net debt to EBITDA of 3 times, Fitch added.

© 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.