Moody's turns gategroup view to positive

Moody's Ratings said it changed the outlook on gategroup Holding AG to positive from stable and affirmed the company's Caa2 corporate family rating and Caa2-PD probability of default rating.

“The rating agency forecasts that gategroup will grow its revenue by close to 10% in 2024, in line with global air passenger growth, before normalizing toward 5% thereafter. While passenger growth is likely going to be lower than 10% in gategroup's geographies this year, medium- and long-haul travel for which there is greater catering penetration have more room to recover.

“Moody's Ratings also expects solid growth from the company's food solutions businesses. Significant inflation across gategroup's entire cost base has delayed the margin recovery but Moody's Ratings expects that its adjusted EBITDA margin will return to pre-pandemic level of around 6% in 2024, from around 4.7% in 2023,” the agency said in a press release.

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