S&P rates GBT JerseyCo loan B+

S&P said it assigned a B+ rating with a 2 recovery rating to GBT JerseyCo Ltd.’s (American Express Global Business Travel) planned $400 million incremental senior secured term loan.

The agency also lowered the issuer rating to B from B+ and the ratings on its $250 million term loan and $50 million revolving credit facility to B+ from BB and revised the recovery rating on the credit facility to 2 from 1 indicating expectations of substantial recovery in the event of a default.

“We base the downgrade on higher-than-expected restructuring costs and a slower recovery. We expect GBT's 2021 leverage will be higher than previously forecast and free operating cash flow (FOCF) will remain negative given our revised forecast for a slower recovery for business travel, higher restructuring charges than what we previously expected, and additional interest from the $400 million of incremental debt,” S&P said in a press release.

The outlook is negative.

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