S&P Global Ratings revised its outlook on Belmond Ltd. to negative, while affirming its B+ issuer credit rating, after the full-service hotel operator launched a review of strategic alternatives.

The review could lead to a possible outright company sale, which could be a leveraging event over S&P's forecast period.

The rating agency said the revised outlook takes into account the possibility that Belmond could take on additional leverage if the company or individual hotels are sold following the review, which could lead to adjusted debt-to-EBITDA sustained above S&P's 6x downgrade threshold on the company.

S&P also expects the company to enter into future capital commitments to secure management agreements, which could either increase debt-to-EBITDA or restrict Belmond's ability to reduce leverage.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.