S&P: Gate Gourmet view stable

Standard & Poor's said it revised the outlook to stable from positive on Gate Gourmet Holdings SCA and its subsidiary Gate Gourmet Borrower LLC. The B long-term corporate credit ratings was affirmed.

"The outlook revision reflects our concerns that the effect of a weakening economic environment within Europe and the U.S., along with the adverse implications on the airline industry, will make it increasingly challenging for Gate Gourmet to improve its operating performance and achieve our target credit measures for a higher rating level, including funds from operations to debt of more than 15% on a sustainable basis," S&P analyst Mohammed Fayek said in a statement.

Ratings reflect the group's exposure to the cyclical and price-competitive commercial airline industry, limited bargaining power, sensitive operating margins and highly leveraged financial structure, the agency said.

These factors are partially offset by the group's leading market position with widespread geographic coverage and low capital requirements, the agency noted.

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