Moody’s downgrades Hotelbeds

Moody’s Investors Service said it downgraded to Caa1 from B2 the corporate family rating of HNVR Midco Ltd. (Hotelbeds). The agency also downgraded Hotelbeds’ probability of default rating to Caa1-PD from B2-PD, and lowered to Caa1 from B2 the ratings on the senior secured revolving credit facility and senior secured term loans issued by HNVR Holdco Ltd.

“The decision to downgrade Hotelbeds and maintain the negative outlook reflects the negative impact that the rapid and widening spread of the coronavirus outbreak is expected to have on Hotelbeds’ financial performance and the risk that a prolonged downturn will lead to a further weakening of the company’s liquidity position,” said Fabrizio Marchesi, a Moody’s vice president and lead analyst for the company, in a press release.

“These ratings are conditional on the successful completion of a €400 million liquidity injection by the company’s financial sponsor in the form of a new term loan D,” added Marchesi.

The outlook remains negative for both entities.

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