TEXT-S&P revises Odigeo outlook to stable; proposed Nts rated 'B'

Mon Jan 21, 2013 7:38am EST

Related Topics

(The following statement was released by the rating agency)

Jan 21 -

Overview

-- Online travel agent Geo Travel Finance SCA (Odigeo) plans to refinance its EUR315 million outstanding senior bank debt with EUR325 million of senior notes.

-- We assume timely completion of the refinancing and believe that this is likely to improve our liquidity assessment, given our understanding of the removal of most of the group's maintenance covenants, headroom under which has been tightening.

-- We are therefore revising our outlook on Odigeo to stable from negative and affirming our 'B' corporate credit rating.

-- We are also assigning a 'B+' rating with a recovery rating of '2' to the proposed super senior revolving credit facility and a 'B' rating with a recovery rating of '3' to the proposed senior notes.

-- The stable outlook reflects our view that Odigeo will maintain adequate liquidity during the next 12 months and that the group's gross adjusted leverage is unlikely to meaningfully decline from our expectation of 6.5x at fiscal year-end 2013.

Rating Action

On Jan. 21, 2013, Standard & Poor's Ratings Services revised its outlook on online travel agent Geo Travel Finance SCA (Odigeo) to stable from negative. We also affirmed our 'B' long-term corporate credit rating on Odigeo.

At the same time, we assigned a 'B+' issue rating to the proposed EUR130 million super senior revolving credit facility (RCF), one notch above our corporate credit rating for the group. We assigned a recovery rating of '2' to the proposed super senior RCF, indicating our expectation of substantial (70%-90%) recovery for bondholders in the event of a payment default. We also assigned a 'B' issue rating to the proposed EUR325 million senior notes due 2019, in line with our corporate credit rating for the group. We assigned the proposed senior notes a recovery rating of '3', indicating our expectation of meaningful (50%-70%) recovery for bondholders in the event of a payment default.

We also affirmed our 'CCC+' rating on the senior unsecured notes. The recovery rating is unchanged at '6' indicating our expectation of negligible (0%-10%) recovery in the event of a payment default.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.