Moody's downgrades B&B Hotels

Moody's Investors Service said it downgraded the corporate family rating of Casper MidCo SAS, the holding company of the French hotel operator B&B Hotels, to Caa1 from B3 and the probability of default rating to Caa1-PD from B3-PD.

Moody’s also downgraded Casper BidCo SAS’ €715 million first-lien senior secured term loan B3 and €120 million equivalent first-lien senior secured multicurrency revolving credit facility to B3 from B2 while the rating on €155 million second-lien senior secured term loan was downgraded to Caa3 from Caa2. The rating outlook has been changed on both entities to negative from stable.

"Our decision to downgrade B&B's ratings reflects the rapid and widening spread of the coronavirus (Covid-19) outbreak with unprecedented restrictions on travel across Europe. We expect this will significantly impact B&B's earnings in 2020, leading to materially weaker credit metrics, negative free cash flow generation and impair its liquidity position," said Vitali Morgovski, a Moody's assistant vice president and lead analyst for B&B, in a press release.

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