S&P lifts Indigo

S&P said it raised its ratings on Indigo Group SA and its debt to BBB from BBB-.

“The upgrade reflects our view that Indigo will maintain solid credit metrics of FFO to debt of 11%-12% and debt to EBITDA of about 6x, supported by resilient operating performance over the next two years. We assume resilient operating performance in 2023-2025, mainly supported by largely inflation-linked tariffs in its concession contracts–with a significant part of EBITDA in France from concessions that benefit from automatic indexation mechanisms–and our expectations of successful negotiations with municipalities for further tariff increases considering higher inflation,” S&P said in a press release.

The outlook is stable.

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