S&P ups gategroup

S&P said it upgraded gategroup Holding AG to CCC+ from SD. The upgrade follows gategroup completing its restructuring, which included a five-year maturity extension of its debt and CHF 500 million of new funds from its shareholders.

“Financial restructuring has improved gategroup's liquidity and extended its debt maturity profile, but the debt burden remains considerable. gategroup has completed its debt restructuring, which primarily targeted an extension of 2021-2022 debt maturities. After the transaction, gategroup's capital structure comprises €665 million of senior loans due October 2026, CHF 325 million of notes due February 2027, and a new CHF 475 million subordinated loan due March 2027 (of which it has so far drawn about CHF 100 million) provided by gategroup's shareholders,” S&P said in a press release.

The agency also noted the company reported about CHF 443 million of lease liabilities, about CHF 630 million of pension deficit, and a CHF 266 million financial liability arising from its shareholding in Servair, which gategroup has controlled since 2017.

The outlook is stable.

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