Fitch assigns Swissport BB-

Fitch Ratings said it assigned Radar Topco Sarl (Swissport) an expected BB- long-term issuer default rating with a positive outlook and its planned €1.2 billion term loan B due 2031 an expected long-term rating of BB+. It also plans to secure a 6.5-year €250 million revolver.

“The IDR reflects Swissport's market position in global ground handling and cargo handling aviation, a contracted business model, a diversified customer base and largely stabilized operations post-pandemic. The rating also reflects the company's planned capital structure, which will increase debt to fund one-off dividends, leading to an increase in pro-forma leverage for 2024 but still remain within the sensitivities for the rating.

“We forecast moderate growth in revenues and EBITDA margin improvement, along with moderately positive free cash flow from 2025, leading to a decline in EBITDAR leverage which underpins the positive outlook on the IDR,” Fitch said in a press release.

Swissport’s financing will be used to return €505 million to shareholders and repay most of the debt, increasing leverage but to materially lower levels than in 2019, the agency said.

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