S&P: Dufry view to negative

Fitch Ratings said it revised Dufry AG’s outlook to negative from stable and affirmed its issuer default rating at BB.

Fitch also said it affirmed Dufry Finance SCA.’s senior unsecured notes rating at BB.

The actions follow news that Dufry is acquiring the Nuance Group.

The affirmation reflects the overall positive impact the acquisition should have on Dufry’s operations and expanded geographic footprint, Fitch said.

The outlook revision reflects the anticipated temporary weakening of credit metrics in fiscal year 2014 and 2015 relating to the increased indebtedness from the new bond issue and a possible longer term drawing under the bridge facility ahead of the new equity placement, as well as the initial operating margin dilution, the agency said.

But, the acquisition of Nuance materially increases Dufry’s market leadership and scope of operations, S&P said.

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