Accor: S&P more confident on debt after AccorInvest

(CercleFinance.com) - S&P Global Ratings has drawn conclusions from Accor's sale of the majority of its real estate division.


The rating agency yesterday said that it has removed the group's credit rating from its watch list.

S&P also confirms the 'BBB-/A-3' rating attributed to the group's debt, after it sold 55% of AccorInvest for 4.4 billion euros in cash. The transaction is set to be completed in Q2.

S&P said in a report that the stable outlook (for the rating) reflects its expectation that Accor will be able to finalise and manage the complex split of AccorInvest, integrate (the Australian group) Mantra, and maintain a strong operating performance.

All this is while the group observes a rigorous financial policy regarding the allocation of proceeds from the sale, which should include up to 1.35 billion euros of share buybacks over the next 24 months.

Note that S&P had placed Accor's credit rating on its watch list after it announced the acquisition of Mantra last October.



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