NH Hotel Group Receives Credit Rating Upgrade from Fitch Ratings

Minor International Public Company Limited (SET: MINT) is delighted to announce that its key subsidiary, NH Hotel Group S.A (“NH”), has received an upgrade in its long-term issuer default rating, senior secured notes and standalone credit profile from Fitch Ratings. NH’s ratings have been raised by two notches to ‘BB-’ from B for long-term issuer default rating, ‘BB+’ from BB- for its senior secured notes due 2026 and by one notch to ‘bb-’ from b+ for standalone credit profile. Meanwhile, NH’s rating outlook and recovery rating remain stable and at RR2, respectively.

These upgrades reflect NH’s robust financial performance of 2023, exceeding expectations, coupled with continued business recovery momentum in 2024, proactive deleveraging initiatives and strong cash flow generation. Additionally, an improvement in the consolidated credit profile of NHH’s parent, MINT, contributed to the upgrades. Strong 2024 bookings and 1Q24 performance, driven by the recovery in business travel and strong room rates, suggest further improvement in RevPar. Aggressive debt prepayments and a capex-light pipeline focusing on new hotel openings under management contracts and selective hotel repositioning investment are expected to lead to sustainable structural margin improvements and benefit credit metrics. With sustained profitability and reduced interest expenses, positive free cash flows are forecasted over the next three years, which can be utilized for growth initiatives as well as repayment and refinancing activities.

Dillip Rajakarier, Group CEO of Minor International expressed his satisfaction with this achievement, stating, “The upgrades of NH’s credit ratings from Fitch are great testaments to the dedication of our European team in driving performance, while also reducing debt levels. MINT and NH remain committed to upholding operational excellence and prudent financial management practices, as well as pursuing growth opportunities aligned with our strategic objectives.”