S&P ups Amadeus IT Group

S&P said it raised its ratings on Amadeus IT Group SA and its senior unsecured debt to BBB from BBB-.

“The strengthening of Amadeus' credit quality stems from a robust recovery in revenue and EBITDA in 2022 paired with our expectation for strong air travel demand in 2023, translating to increasing EBITDA and leverage sustained near 1.5x. At the end of 2022, the group's debt to EBITDA, as adjusted by S&P Global Ratings, had declined to 1.9x from 9.3x the year before. This is thanks to EBITDA bouncing back from pandemic-related setbacks and debt reduction, while free operating cash flow (FOCF) to debt improved materially to over 30%,” the agency said in a statement.

“We anticipate Amadeus' overall air distribution bookings this year to reach 82%-84% of 2019 levels and passengers boarded to stand only 5%-7% lower than 2019 levels; this is an improvement over last year's 68.3% and 77.0%, respectively, of 2019 levels. Meanwhile, the group's hospitality and other solutions revenue should increase between 15% and 20% from last year's figures. We assume leisure travel will remain strong this year, despite the economic uncertainty.,” S&P added.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.