Moody’s stabilizes Sani/Ikos outlook

Moody’s said it revised its outlook for Sani/Ikos Group NewCo SCA and Sani/Ikos Financial Holdings 1 Sarl to stable from negative and affirmed the B3 corporate family rating and the Caa1-PD probability of default rating of Sani/Ikos Group. The agency also affirmed the Caa2 instrument rating of the €300 million backed senior secured bond guaranteed by the company and issued by Sani/Ikos Financial.

"The rating affirmation of Sani/Ikos's CFR reflects a stronger-than-anticipated operating performance, resulting in quicker than forecasted deleveraging, with a debt/EBITDA ratio projected to be at around 10x by the end of 2023. The stable outlook reflects our expectation that Sani/Ikos will continue to generate operational performance improvements, bolstered by new openings and robust market fundamentals for luxury resorts in the Mediterranean," said Elise Savoye, a Moody's vice president, senior analyst and lead analyst for Sani/Ikos, in a press release.

"As such, we anticipate leverage to be steady at around 10x over the forthcoming 12 to 18 months with operating performance improvements counterbalancing the impact of debt-funded growth on leverage and coverage metrics. The stable outlook also reflects our expectation that refinancing needs will be addressed proactively and the absence of large shareholder payouts, supporting the preservation of an adequate liquidity," Savoye added.

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