Moody's pumps up Playa

Moody's Investors Service said it upgraded Playa Resorts Holding BV’s corporate family rating, senior secured first-lien revolving credit facility and senior secured first-lien term loan ratings to B1 from B2.

“The upgrade of Playa's ratings reflects the company's improved operating performance aided by revenue growth in all the regions where it operates, margin improvement and lower leverage,” Moody’s said in a press release.

The agency noted that Playa’s EBITDA margin as adjusted by Moody's was at 18.6%, beating pre-pandemic levels of around 15.6% and 6.7% in 2018 and 2019, respectively. Playa also shaved $185 million of its debt, including operating leases, cutting its leverage metrics, with debt to EBITDA lowering to 4.2x as of LTM Sep-23 from 4.7x in 2021 and 13x in 2020. The 4.2x leverage metric is also below the 6.6x levels in 2018-19.

“Playa's ratings continue to reflect its strong portfolio of all-inclusive luxury and upscale Caribbean and Pacific coastal resorts which benefits from strong US travel demand, which is ahead of the global travel recovery,” Moody’s said.

The outlook is maintained stable.

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