S&P rates Dufry notes BB+

Standard & Poor's said it assigned its BB+ long-term corporate credit rating to Dufry AG. The outlook is stable.

At the same time, the agency said it assigned a BB+ issue-level rating to the proposed $500 million eight-year senior unsecured notes to be issued by special-purpose entity Dufry Finance SCA, in line with the corporate credit rating of Dufry AG.

The agency said it also assigned a BB+ issue-level rating to the CHF650 million multicurrency revolving credit facilities borrowed by Dufry International AG, a subsidiary of Dufry AG. The recovery rating on these unsecured debt instruments is 4, indicating an expectation of average recovery for debt holders in the event of a payment default.

S&P said the rating reflects its assessment of Dufry's business risk profile as satisfactory, due to the agency's view of the company's position as a leading global player in the growing, but volatile, retail travel industry. Against this, the agency said it sees Dufry's financial risk profile as significant, owing to the company's track record of debt-financed external growth.

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