(Boursier.com) — S&P Global Ratings confirms the credit and long-term issuer ratings of ADP Group to “A” with a ‘negative’ perspective. The agency says that a stronger than expected recovery in air traffic in Paris should allow the manager of Paris airports to maintain its FFO to debt ratio at 16% on average over the period 2023-2025, against 16.1% in 2022. This is despite stagnating fares amid high inflation, and passengers’ appetite for travel, which could be tested in 2024 by a sharp rise in airfare prices.
According to the agency, ADP’s good credit ratios are offset by its growing exposure to the riskiest countries, in particular via the 331 million euro loan granted to its Indian partner GMR Airports Infrastructure as part of an agreement concluded March 19, 2023. S&P also expects ADP’s international business in generally riskier jurisdictions to contribute approximately 30% of total EBITDA by 2025, up from 22.2% in 2022.
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