Moody's downgrades Elior

Moody's Investors Service said it downgraded Elior Group SA's corporate family rating to B1 from Ba3, probability of default rating to B1-PD from Ba3-PD and the rating on the guaranteed senior unsecured notes due 2026 to B1 from Ba3. The agency changed the outlook to stable from negative.

"Today's downgrade reflects our expectation that Elior's profitability will recover at a slower pace than we initially expected in June 2021 due to the rapid spread of the Omicron variant," said Eric Kang, a Moody's vice president, senior analyst and lead analyst for Elior, in a press release.

"The slower recovery will result in credit metrics, which will remain outside the parameters for a Ba3 rating in fiscal 2022, a third consecutive year, with limited visibility on a recovery of profitability towards pre-pandemic levels in fiscal 2023," added Kang.

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