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Moody's gives Oravel, loan B3
Moody's Investors Service said it assigned a first-time B3 corporate family rating to Oravel Stays Private Ltd. (OYO) and a B3 rating to the senior secured term loan to be issued by Oravel Stays Singapore Pte. Ltd., OYO's wholly owned subsidiary. OYO and many of its subsidiaries will guarantee the loan.
"OYO's B3 corporate family rating reflects its position as one of the largest providers of budget accommodation in its key operating markets, good long-term growth prospects for the domestic budget travel sector, adequate liquidity to cover its likely cash burn and continued financial support from its key shareholders," said Sweta Patodia, a Moody's analyst, in a press release.
The company will use the loan proceeds to refinance its debt and for general corporate purposes.
The outlook is stable. The outlook considers the expectation that OYO's operations can be funded, pro forma for the loan proceeds, for at least the next three years and the cash burn will significantly decline over the next 12-18 months as operating performance starts recovering following the roll-out of large-scale vaccination programs, the agency noted.
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