S&P Global Ratings affirmed its BBB-/A-3 long- and short-term issuer credit ratings on Accor SA, which operates under the AccorHotels brand, and removed the ratings from CreditWatch following the French hotelier's agreement to sell a 55% stake in its property arm, AccorInvest.
S&P also affirmed its BBB- issue rating on the company's senior unsecured debt and the BB issue ratings on its junior subordinated debt, also removing them from CreditWatch developing.
The outlook on the ratings is stable.
The rating agency expects the AccorInvest stake disposal to boost the company's profitability through lower leasing rental costs and the end of high fixed hotel maintenance costs.
Proceeds from the stake sale are expected to be funneled toward acquisitions, including the purchase of Australian hotel and resort operator Mantra Group Ltd. and the company's share buyback program of up to €1.35 billion.
The stable outlook reflects S&P's expectation that the hotelier will successfully complete both the AccorInvest spinoff and the Mantra acquisition, while maintaining its operating performance, margins and disciplined financial policy.
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 document referred to in this news brief can be found here.
