Moody's views Hotelbeds positively

Moody's Investors Service said it changed its outlook for HNVR Midco Ltd.'s (Hotelbeds) outlook to positive from stable.

“The positive outlook reflects the fact that the speed of Hotelbeds' performance recovery may put upward pressure on the rating in the next 18 months. During this period, we forecast Moody's-adjusted leverage will improve to below 6.5x, with Moody's-adjusted free cash flow (FCF)/debt growing towards mid-single digits. However, execution risk surrounding our projections remains significant, given the uncertain macroeconomic environment,” the agency said in a press release.

Concurrently, Moody's affirmed the Caa1 long-term corporate family rating, the Caa1-PD profitability of default rating of Hotelbeds, and Caa1 ratings of the backed senior secured revolving credit facility and backed senior secured term loans issued by HNVR Holdco Ltd.

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