S&P cuts eDreams Odigeo

S&P said it downgraded eDreams Odigeo SA and its €425 million senior secured notes to B- from B and maintained the 4 recovery rating (30%-50%; rounded estimate: 30%). The agency also lowered the issue rating to B+ from BB- on the company's €175 million revolving credit facility. The recovery rating remains 1 (90%-100%; rounded estimate 95%). S&P also removed these ratings from CreditWatch negative.

The agency said it revised its forecasts for passenger air traffic volumes. “Based on our revised assumptions for air travel, we forecast that eDreams Odigeo's S&P Global Ratings-adjusted leverage will be well above 20x in fiscal 2021 (ending March 2021), 9x in fiscal 2022, and around 7x in fiscal 2023. Consequently, we expect the company's credit metrics will remain durably higher than its pre-Covid level of around 4x,” S&P said in a press release.

The outlook is negative.

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