Moody's: Gate Gourmet view stable

Moody's Investors Service said it changed to stable from positive the outlook Gate Gourmet Borrower LLC's B2 corporate family rating.

The action reflects the decision of Gate Gourmet Group Holding LLC, the ultimate holding company, to complete a CHF 50 million share buyback in October, drawing under the delayed draw term loan with the funds being passed up as a dividend from Gate Gourmet Holding SCA, according to the agency.

The change in outlook also reflects the expectation of continued difficult market conditions in the airline industry, the agency said.

"The change in the outlook for Gate's ratings reflects the impact of the company's decision to buy back shares on its liquidity position and credit metrics, particularly in a period when weak market prospects for the airline industry increase the uncertainty regarding the capability of the company to deliver on targets," Stefano del Zompo, Moody's analyst, said in a statement.

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