S&P ends watch on Saga

S&P said it ended its CreditWatch with negative implications on Saga plc’s ratings, which it placed on April 11 and affirmed its B- issuer and senior unsecured debt ratings. The outlook is negative.

“Saga is witnessing strong bookings across its cruise operations, alleviating the likelihood of a material shortfall in our liquidity assessment to meet upcoming debt maturities.

“Nevertheless, there is continued uncertainty about the company's cash generation for August 2023-January 2024, the second half of fiscal 2024 (year ended Jan. 31, 2024), given the challenging market conditions in the motor brokerage business, while Saga will have to repay £150 million of senior unsecured notes in May 2024 and £62 million of amortizing shipping debt facilities over the next 12 months,” the agency said in a statement.

Given the liquidity situation, S&P noted Saga has “little room for underperformance.”

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