Fitch places Alpha Group on watch

Fitch Ratings said it placed Alpha Group SARL's CCC long-term issuer default rating on rating watch negative. Alpha is the top entity in the group that owns A&O, a European hostel operator.

“The RWN reflects the risk that A&O's liquidity may be exhausted by May 2021 unless new external funds are injected. Renewed lockdowns in most European countries since our last review in October 2020, including in Germany, have deteriorated A&O' prospects for 2021 more than we anticipated,” the agency said in a press release.

The RWN’s resolution will be subject to rebuilding a liquidity position allowing both debt service and the running of operations during the next 12 months, Fitch said.

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