Fitch Ratings has revised the outlook on OYO parent Oravel Stays’ long-term foreign and local-currency issuer default ratings (IDRs) to ‘positive’ from ‘stable’, reflecting its view that OYO will deleverage driven by EBITDA growth.
The parent entity of the hospitality major has been re-named to PRISM from ‘Oravel Stays’.
Fitch has also affirmed the rating on the USD 830 million senior secured term loan issued by its-fully owned subsidiary, Oravel Stays Singapore Pte Limited, at ‘B’ with a Recovery Rating of ‘RR4’. The issuance is unconditionally and irrevocably guaranteed by OYO and certain other subsidiaries within the group.
“The outlook revision reflects our view that OYO will de-leverage, driven by EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) growth and management’s commitment to a more conservative capital structure,” Fitch Ratings said.
The ratings agency said it expects OYO’s revenue to rise by 9-14 per cent in FY27-28 after growing by 50 per cent
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