S&P rates Swissport loan B-

S&P said it revised its outlook on Swissport Group Sarl and the group's related entities to negative from stable and affirmed the B- long-term issuer credit ratings on the entities.

At the same time, S&P assigned a B- issue rating to the €325 million incremental term loan B issued by Swissport Financing Sarl and affirmed the B- issue rating on the group's existing senior secured €460 million term loan B and €364 million senior secured notes.

The recovery rating is 3, reflecting an expectation of meaningful recovery (50%-70%; rounded estimate: 50%, revised from 55% for the existing debt) in the event of default.

The agency also affirmed the issue rating on the group's remaining senior unsecured notes at CCC and affirmed the CCC issue rating on the group's senior secured notes issued by Swissport Investments SA. The recovery rating remains 6, indicating an expectation of negligible recovery (0%-10%; rounded estimate 0%).

S&P affirmed the B- issue rating on the CHF 110 million senior secured revolving credit facility issued by Swissport International. The recovery rating remains at 3, reflecting an expectation of meaningful recovery (50%-70%; rounded estimate: 50%, revised from 55%).

“The outlook revision reflects our heightened concerns that Swissport's owner, Chinese conglomerate HNA Group, is, due to its current liquidity constraints, willing to increase Swissport's already high debt leverage and interest burden,” the agency said in a news release.

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