S&P puts GBT JerseyCo on positive watch

S&P said it placed on its ratings for GBT JerseyCo Ltd. (American Express Global Business Travel) on CreditWatch with positive implications. At the same time, it assigned a B+ rating to Global Business Travel Group Inc. (GBTG), the ultimate parent of borrower and operating subsidiary GBT JerseyCo, and placed it on CreditWatch positive.

Amex GBT plans to acquire CWT Group LLC on a cash-and-stock basis. The deal is expected to close in the second half of 2024.

“Amex GBT will benefit from increased global presence of an additional 4,000 customers and total transaction value growth of approximately 45%. The combined company will also benefit from a more diverse set of customers, including CWT's global multinational, military, and government clients and within Amex GBT's customer base of small to midsize enterprises,” S&P said in a press release.

The downside, however, is the execution risk and the cost of integrating the two platforms. “However, Amex GBT has a track record of delivering significant synergies from its previous acquisitions of HRG in July 2018 and Egencia in November 2021,” the agency noted.

If the deal goes through, S&P said it could raise the ratings.

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