S&P rates Swissport, loan B+

S&P said it assigned preliminary B+ ratings to Radar Bidco Sarl (Swissport) and its new €1.2 billion seven-year term loan. The company also plans to obtain a €250 million 6.5-year revolving credit facility. The outlook is stable.

“Swissport's fair business risk profile reflects its position as the world's leading independent provider of airport logistics services. This includes a No. 1 position for ground handling, with a market share of about 15%, and a No. 2 position in cargo handling, with a market share of about 13%. Swissport benefits from its reputation as a well-established brand with high quality and safety standards, its greater breadth of services than competitors, and its global footprint,” S&P said in a statement.

However, the volatility in air freight and passenger flights constrains Swissport’s business risk profile, the agency said.

Swissport will use the proceeds to refinance its existing term loan, return €505 million to shareholders, and cover transaction-related expenses.

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