Fitch cuts Alpha Group

Fitch Ratings said it downgraded Alpha Group Sarl’s long-term issuer default rating to CCC from B-. Fitch also downgraded its senior secured debt rating to CCC+/RR3 from B+/RR2.

“The downgrade to CCC reflects an expected deterioration of the liquidity situation in 1H21, due to higher-than-anticipated cash burn following the resurgence of the pandemic across Europe from September 2020. We expect the company will use virtually all its available liquidity headroom to cover operating losses until June 2021, following the delayed recovery of group travel as a result of the restrictions imposed by the pandemic. If these restrictions extend to 2H21, liquidity could be exhausted in the absence of further cash preservation or alternative funding sources,” Fitch said in a press release.

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