S&P turns Awaze outlook to stable

S&P said it revised its outlook for Awaze Ltd. to stable from negative and affirmed its B- long-term issuer credit rating on the company. The agency also affirmed its B issue and 2 recovery ratings on the €715 million first-lien debt and CCC issue and 6 recovery ratings on the €167 million second-lien debt.

“Staycation trends support our forecast of Awaze's revenue growth in 2022.Average prices across the leisure accommodation sector in Europe were significantly higher than 2019 levels as international travel constraints drove the staycation demand in summer 2021. There was robust demand for self-catering holidays in the U.K., and the leisure businesses benefitted from the temporary reduction of VAT rates. In the U.K., Awaze reported average weekly rates of €200-€270 from the cottages and parks listed on its sites (about 35%-70% higher than 2019 levels),” S&P said in a press release.

The improved outlook reflects the view that stable staycation demand for properties in the U.K. and Denmark will enable the group to keep the current performance levels with adjusted debt to EBITDA between 7x-8x and positive free operating cash flow (after lease payments), the agency said.

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