Fitch affirms Whitbread

Fitch Ratings said it affirmed Whitbread plc's long-term issuer default rating and senior unsecured rating at BBB.

The ratings have been removed from rating watch negative.

The outlook is stable.

The removal of the rating watch follows the announcement by Whitbread of the final allocation of Costa's disposal proceeds, Fitch explained.

Around two thirds will be returned to shareholders, less than what Fitch had initially expected.

The Costa sale, completed in January, should allow an acceleration of Whitbread's expansion plan to offset the loss of scale and diversification resulting from the sale of Costa, while keeping a broadly stable leverage, in line with a BBB rating, the agency added.

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