S&P cuts B&B Hotels

S&P said it lowered its rating its ratings on Casper Midco SAS (parent of B&B Hotels) and the first-lien term loan B issued by Casper Bidco SAS to CCC+ from B-, and the issue rating on the second-lien term loan to CCC- from CCC. The agency removed the ratings from CreditWatch negative, where it placed them on March 24.

“Since Covid-19 lockdown restrictions have been progressively lifted throughout continental Europe, B&B Hotels has reopened most of its hotels and seen a steady demand increase, reaching above 40% occupancy in its main markets of France and Germany in the past week. However, we expect a full recovery in travel and hotel demand could take several years,” S&P said in a press release.

The agency anticipates B&B’s already-high financial leverage will likely continue eroding and cash flow will not return to positive in the medium term, S&P said.

The outlook is stable.

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