S&P lowers Elior Group

S&P said it lowered its ratings on Elior Group and its senior unsecured notes to B+ from BB-.

Extended restrictions associated with omicron hurt Elior's activities in the first half of fiscal 2022, starting Oct. 1, 2021, particularly its education, business and industry segments, the agency noted.

“Although Elior reported close to 20% revenue growth year-on-year in first-half 2022 (of which 18% organic), the group's EBITA remained negative (minus €16 million), showing only a modest improvement compared with the previous year. The French contract catering business was particularly badly hit because of the more stringent social-distancing restrictions implemented by the government, while EBITA from international operations turned positive in the first half,” S&P said in a press release.

The agency said it sees a gradual improvement in Elior’s credit metrics in fiscal 2023.

The outlook is stable.

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