S&P raises GBT JerseyCo

S&P said it raised its ratings on GBT JerseyCo Ltd. (American Express Global Business Travel or Amex GBT) to B+ from B- and its debt-level ratings by two notches.

“The upgrade reflects strong operating performance by Amex GBT, which supports rapid deleveraging such that S&P Global Ratings-adjusted leverage improves to the high-3x area in 2024. Market share gains, new business wins among SME customers, and overall industry recovery trends for business travel led to year-over-year revenue growth of 31% for the nine-month period ended Sept. 30, 2023. We expect Amex GBT to grow its revenue in the mid-20% area in 2023 as the trajectory for business travel recovery softens, albeit still at positive levels,” S&P said in a press release.

The agency also said it predicts Amex GBT’s S&P Global Ratings-adjusted EBITDA margins in 2024 to widen by roughly 450 basis points based on the roll off of $80 million in restructuring expenses, benefits from recent investments and productivity gains.

The outlook is stable.

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