Fitch Ratings downgraded Madrid-based NH Hotel Group SA's long-term issuer default rating to B from B+.
The outlook is stable.
The rating agency also downgraded the company's senior secured long-term rating to BB- with recovery rating of RR2.
The ratings action is in line with the application of Fitch's parent subsidiary linkage criteria and reflects a change in the agency's overall linkage strength assessment.
Fitch had stated in its ratings action commentary dated April 10, that it would equalize NH Hotel's ratings with the consolidated profile of Minor International Public Co. Ltd. should the latter acquire full ownership.
Thailand-based Minor holds a 94.1% stake in NH Hotel as of Dec. 5 and has not reduced it to the originally intended 51%-55% expected by Fitch. The rating agency now deems strong the ties between the two entities.
The downgrade reflects Minor's more leveraged consolidated profile, although there have been no signs so far of a change in NH Hotel's financial policy.