Moody’s Cuts Travelodge Deeper Into Junk as Debt Maturities and Negative Cash Flow Pressure Earnings
Updated
Updated · Bloomberg · Jun 11
Moody’s Cuts Travelodge Deeper Into Junk as Debt Maturities and Negative Cash Flow Pressure Earnings
1 articles · Updated · Bloomberg · Jun 11
Summary
Moody’s lowered Travelodge Hotels Ltd further into junk status late Wednesday, citing weaker operating performance and worsening debt metrics at the UK budget hotel chain.
Cost pressures are expected to keep constraining earnings growth, the ratings firm said, undermining Travelodge’s ability to improve leverage.
Upcoming debt maturities and persistently negative free cash flow also raised doubts about the sustainability of the company’s capital structure.
The downgrade highlights mounting financing risk for Travelodge as higher costs and weak cash generation leave less room to manage its debt load.