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S&P downgrades Accor to junk as virus upends hospitality industry

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The cut to BBB- with a negative outlook is set to cost the company tens of millions of euro in additional interest payments

S&P Global Ratings. Picture: REUTERS/BRENDAN MCDERMID

The decision strips Accor of its investment grade status, even though it has a BBB- rating with Fitch, and means it will have to pay additional interest on some of its debt. This means Accor’s interest bill will rise by about €82m over the period, according to Reuters’ calculations; a figure the company confirmed was broadly accurate.

The number of companies or countries at risk of having their credit ratings cut has been pushed to an all-time high by the pandemic, an S&P Global analysis showed in May.

 

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