Moody's upgrades Avolta

Moody's Ratings said it upgraded Avolta AG's corporate family rating to Ba2 from Ba3 and its probability of default rating to Ba2-PD from Ba3-PD. Concurrently, the agency raised to Ba2 from Ba3 financing subsidiary Dufry One BV's backed senior unsecured ratings. The outlook has been changed to stable from positive for both entities.

Avolta posted organic revenue growth of 22% in 2023 and its Moody's-adjusted EBITDA climbed to around CHF 2.5 billion in 2023 from CHF 1.6 billion a year earlier.

“Moody's expects organic revenue growth to reach at least 5% in 2024 and 2025, reflecting Avolta's regional mix geared toward EMEA and the Americas, for which traffic growth will be lower than the 9% global air traffic growth forecast for 2024.

Avolta plans to realize an incremental CHF 55 million of cost synergies from the Autogrill acquisition in 2024 and additional cost efficiencies in the normal course of business which Moody's expects will lead to some margin improvements in the near term,” the agency said in a press release.

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