Fitch upgrades IPO-bound Oyo’s long-term issuer rating to ‘positive’

Ratings agency Fitch has revised its outlook on hospitality major OYO, upgrading its long-term foreign and local currency issuer default ratings (IDRs) to ‘positive’ from ‘stable’, while affirming its ratings at ‘B-’.

Fitch also affirmed the rating on the $660 million senior secured term loan facility due 2026, issued by OYO’s fully owned subsidiary, Oravel Stays Singapore, at ‘B-‘.

The agency expects significant growth in Oyo’s Ebitda in FY24, led by an ongoing demand recovery in the travel and tourism industry, the company’s stable gross margins, and reduction in operating costs.