S&P downgrades Swissport

S&P said it lowered the long-term corporate credit rating on Swissport Group Sarl (Swissport) and the group's related entities to B- from B.

The outlook is stable.

The agency also said it lowered the rating on the senior secured €460 million term loan B and €364 million senior secured notes issued by Swissport Financing Sarl to B- from B.

The recovery rating on the debt remains at 3, indicating 50% to 70% expected default recovery.

S&P also said it lowered the rating on the group's remaining senior unsecured notes to CCC from CCC+. The recovery rating on this debt remains at 6, indicating 0 to 10% expected default recovery.

The agency said it lowered the rating on the CHF 110 million senior secured revolving credit facility issued by Swissport International Ltd. to B- from B. The recovery rating on this instrument is unchanged at 3, indicating 50% to 70% expected default recovery.

The downgrades follow the downward revision of HNA Group's group credit profile to B from B+, reflecting the group's tightening liquidity and sizable debt maturities, S&P said.

HNA Group is the controlling owner of Swissport, the agency said, and it is considers Swissport to be a moderately strategic subsidiary of the HNA Group because the company provides backward integration to its airline businesses through its ground handling and cargo operations.

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