S&P boosts Getlink

S&P said it raised its ratings on Getlink SE and its senior secured notes to BB from BB- and removed all ratings from under criteria observation. The agency completed its ratings review of Getlink under new sector-specific corporate criteria on April 4.

“The upgrade reflects our expectation that Getlink will maintain a prudent financial policy, leading to solid liquidity at both Getlink and Eurotunnel over 2024-2026. This reduces refinancing risk ahead of the maturity of €850 million of Getlink debt in October 2025,” S&P said in a statement.

The agency said it estimates Eurotunnel's contribution to Getlink's EBITDA will rebound to above 60% in 2024 from 51% in 2023 and to 80%-90% thereafter. “This reflects the normalization of cash flows at ElecLink, the one-gigawatt unregulated electricity interconnector between the U.K. and France, and our anticipation that Eurotunnel's earnings will gradually improve, underpinned by strong fundamentals and a stabilizing market environment, and notwithstanding short-term headwinds.”

The outlook is stable.

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