S&P turns Sodexo view to stable

S&P said it revised Sodexo SA’s outlook to stable from negative and affirmed the BBB+ issuer and senior unsecured debt ratings.

“Sodexo's decent performance continued into the third quarter of fiscal 2022 and the easing of pandemic-related restrictions in most markets supports the outlook revision. Organic growth recovery continues across all business subsegments and geographical regions because the easing of restrictions, particularly across Europe and U.S., has supported a stronger rebound in business and administrative services, especially in the sports and leisure and corporate segments.

“The growth in facility management has supported the slower recovery in the food business, which has now reached about 90% of 2019 revenue, and new commercial wins should support continued recovery toward 2019 revenue levels in fiscal 2023,” the agency said in a press release.

S&P said it forecasts Sodexho should reach funds from operations of about 25% in fiscal 2022 and reduce its leverage to 3x from 3.5x.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.