S&P rates Swissport notes B

Standard & Poor's said that it assigned a B long-term corporate credit rating to Swissport International Ltd. and a B issue rating to Swissport's CHF 350 million and $425 million tranches of senior secured notes issued by Aguila 3 SA, a holding company created for the purpose of acquiring Swissport.

The outlook is stable.

The proceeds of the notes, along with about CHF 450 million of funds from the new owners, were used to finance the acquisition of Swissport from Ferrovial SA as well as refinance existing debt.

The recovery rating on the notes is 4, reflecting the expectation of average (30%-50%) recovery in the event of a payment default.

The ratings on Swissport reflect the group's high leverage and exposure to the highly cyclical and competitive airline industry with local competitors that tend to be well entrenched, the agency said.

The ratings consider Swissport's leading market position in providing airport services, the resilience of the group's profitability in recent years, its geographically diverse portfolio of airports served and its well diversified customer base, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.