S&P lifts NH Hotel, view to stable

S&P said it revised NH Hotel Group SA's stand-alone credit profile to B+ from B as a result of NH Hotel's solid performance, continuous de-leveraging and substantial free operating cash flow generation.

The agency also said it affirmed the company's issuer credit rating at B and revised its outlook to stable, reflecting the application of the group rating methodology.

S&P also said it affirmed the BB- rating on NH Hotel's senior secured notes.

The ratings changes follow Minor International's completed debt-funded acquisition of NH Hotel Group, bringing its total stake in the company to 94.1%, the agency explained.

The stable outlook is based on an expectation that Minor will be able to refinance the largest part of its bridge loan by the end of first-quarter 2019 and the remaining bridge loan in the second-quarter of 2019, S&P said.

The ratings reflect a view that the company is now an integral part of Minor group's strategy given that it contributes 45% of the group's EBITDA, the agency said.

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