Fitch gives Radisson B+, notes BB-

Fitch Ratings said it assigned Radisson Hospitality AB an expected long-term issuer default rating of B+(EXP) with a stable outlook.

In addition, the agency assigned Radisson's upcoming €250 million senior secured bond an expected rating of BB-(EXP) with a recovery rating of RR3 (69%).

Fitch said the issuer default rating reflects Radisson's solid market position in the mid-to-upscale hotel segment, and a balanced portfolio structure between leased, managed and franchised hotels.

Despite a limited profitability compared with other rated peers, the asset-light business model and a high proportion of variable rents provide some protection in a downturn, the agency said.

This is a mitigating factor to the inherent revenue cyclicality that the company is exposed to, Fitch said.

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