INTERNATIONAL. Global travel retail powerhouse Avolta has announced that it has received an upgraded credit rating from BB to BB+ with a stable outlook from S&P Global Rating.
In the rating report dated 3 April, the credit ratings agency highlighted Avolta’s strong operating performance in 2023 as a result of the stable travel recovery; its tightened financial policy; and its successful combination with Autogrill, which was achieved ahead of schedule.
As reported, the company last week received a boost after Moody’s Investment Service upgraded its credit rating from Ba3 to Ba2 with Stable Outlook last week.
S&P Global also noted the enhanced commercial competitiveness of Avolta, demonstrated by its recent win of the Aena 12-year concession contracts in Spain.
S&P commented: “The group completed the combination of Dufry and Autogrill ahead of plan, and we see a strengthening of its business model thanks to significant improvements in its scale, geographic diversification and product mix over the past few years.”
The positive outlook indicates S&P’s expectation of continued sound operating performance, reinforced by the stable increase in air passenger traffic, as well as the successful execution of its global strategy.
The ratings agency sees Avolta’s new capital allocation policy as “prudent and more conservative” than its pre-pandemic approach, which when combined with the operating performance, is expected to deliver strong credit metrics in the medium-term.
Avolta Chief Financial Officer Yves Gerster said: “We are extremely satisfied with the rating upgrade by S&P Global Ratings, following last week’s upgrade from Moody’s. The rating improvements confirm our strong performance achieved in 2023, the positive outlook and consistent financial policy.
“As commented by the agency, the increased diversification achieved with the successful combination with Autogrill is enhancing our resilience, paving the way for the implementation of our Destination 2027 strategic vision.” ✈
