Moody’s drops Swissport, notes to B3

Moody's Investors Service said it downgraded Aguila 3 SA’s (Swissport International Ltd.) corporate family rating to B3 from B2, probability of default rating to B3-PD from B2-PD and the outstanding $945 million and CHF 350 million senior secured notes to B3 from B2.

The outlook is stable.

"Today's rating action reflects our view that leverage as measured by Moody's Adjusted Debt to EBITDA remains high based on preliminary figures for year-end 2014 and our expectation that it will remain above our guidance for a B2 rating of 6.0x pro forma for the acquisition of Servisair in 2015. The rating action also reflects our view that the company's free cash flow (FCF) generation will only be marginally positive this year because of pricing pressure, albeit slightly easing, from airline customers and operational setbacks at Gatwick and other airports," Moody’s assistant vice president Emmanuel Savoye said in a news release.

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