Moody's changes Elior view to stable

Moody's Investors Service said it affirmed the Ba2 corporate family rating and Ba2-PD probability of default rating of Elior Group SA and changed the outlook to stable from negative.

“We revised Elior's rating outlook to stable from negative to reflect the improvement in the company's credit metrics following the disposal of Areas as well as our expectation that the stabilization of operating performance in the last fiscal year ended September 2019 will be sustained over the next 12-18 months,” said Eric Kang, a Moody's vice president, senior analyst and lead analyst for Elior, in a press release.

“Competitive pressure will continue to constrain any material improvement in organic revenue growth and operating margins, but we expect Elior's Moody's-adjusted debt/EBITDA to stay around 3.5x-3.6x and Moody's-adjusted free cash flow/debt to be around 2%-2.5%, which will adequately position Elior's CFR at Ba2,” said Kang.

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