Fitch rates NH Hotel notes B+

Fitch Ratings said it assigned NH Hotel Group SA's new €400 million due 2026 an expected senior secured rating of B+ with an RR2 recovery rating.

The agency affirmed the long-term issuer default rating at B-.

“The planned €400 million senior secured notes will address NHH's refinancing risk by 2023, when we expect operations to still be in the recovery phase, by extending debt maturity a further three years to 2026. It will also support current operations that continue to generate negative funds from operations (FFO) in a hospitality sector that is depressed by the pandemic. The new notes retain the same covenant package as NHH's existing notes, which restrict cash upstream unless certain leverage covenants are met,” Fitch said in a press release.

Fitch rates NHH’s 3¾% notes due 2023 B+/RR2.

The outlook is negative.

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