S&P upgrades eDreams Odigeo

S&P said it raised its ratings for eDreams Odigeo SA and its super-senior revolving credit facility to BB- from B+ and its senior secured debt to B from B-. The 1 recovery rating on the revolver is unchanged but the agency upgraded the recovery rating on the senior secured debt to 3 from 4.

“Credit metrics have continued to improve, demonstrating that eDreams is on a sustainable path toward meeting its fiscal 2025 targets (year ending March 31, 2025). Despite a dip in bookings during the quarter to Dec. 31, 2023, eDreams reported performance in line with expectations. We estimate the company will report solid performance for fiscal 2024, fueled by the ongoing rebound in demand for leisure travel,” S&P said in a press release.

However, the agency said it still views eDreams as highly leveraged, even with an expectation of leverage declining toward 6x by fiscal 2024 and toward 5x by fiscal 2025. It expects FOCF to debt to stay over 10%, which supports the overall credit rating.

The outlook remains stable.

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