Minor International Public Company Limited (SET: MINT) is pleased to announce that its key subsidiary, NH Hotel Group S.A (NH), has been upgraded by Moody’s Investors Service in terms of corporate family rating, default rating probability and senior secured notes instrument rating. This marks the second upgrade in 2023, following an earlier improvement in March. NH’s ratings have risen from B2 to B1 for corporate family rating, and from B2-PD to B1-PD for the probability of default rating and from B1 to Ba3 for their EUR 400 million senior secured notes due 2026.
The upgrades reflect NH’s robust financial performance, surpassing expectations with strong demand from leisure and business sectors, and higher room rates contributing to revenue growth. Efficient operations have also led to increased profitability. NH has effectively used its cash to reduce debt and lease liabilities significantly, while strengthening its balance sheet and liquidity, preparing well for future capital expenses. This echoes their management team’s commitment to deleverage and return to pre-pandemic financial and credit metrics.
Moody’s has shifted its outlook on NH to Positive from Stable, acknowledging NH’s solid standing within the B1 rating category and its potential to further reduce leverage and generate sufficient cash flow for debt repayment and growth investments.
Chaiyapat Paitoon, CFO of Minor International expressed satisfaction, “Our team in Europe has committed their efforts to boosting profits, while managing debt levels. We are delighted that Moody’s has recognized our performance improvements in all metrics. Both MINT and NH aim for high-quality growth and a robust balance sheet going into 2024.”
