Research: Rating Action: Moody’s Confirms Amadeus’ Baa2 Long-Term Issuer Rating, Outlook Changes to Stable

Paris, September 14, 2022 — Moody’s Investors Service (“Moody’s”) today affirmed Amadeus IT Group SA’s Baa2 and (P)Baa2 long-term issuer ratings and senior unsecured EMTN program ratings. (Amadeus or the company), respectively. At the same time, Moody’s affirmed Amadeus’ senior unsecured rating Baa2. The company’s P-2 short-term issuer rating and commercial paper rating were also affirmed. The outlook for all ratings changed from negative to stable.

“The ratings affirmations and outlook stabilization reflect Moody’s expectation that Amadeus’ financial performance will continue to recover over the course of 2022 and 2023, such that its financial metrics return to pre-pandemic levels that are compatible with a Baa2 rating,” said Fabrizio Marchesi, VP-Senior Analyst and Principal Analyst for Amadeus. “Moody’s expects the company’s financial performance to continue to recover, despite growing recession risk, particularly as year-over-year comparables will remain relatively easy through the first quarter of 2023,” Marchesi added. .


Today’s change in outlook to stable reflects Moody’s expectation that Amadeus’ financial performance will continue to recover, with revenue increasing to €4.2 billion and €5.0 billion. euros, and a company adjusted EBITDA reaching approximately 1.3 billion euros and 1.9 billion euros, in 2022 and 2023, respectively. As a result, Moody’s adjusted leverage is expected to decline from 4.0x in June 2022 to 2.3x in December 2023.

Moody’s considers that Amadeus could deleverage more quickly than currently expected, if it chooses to allocate part of its significant cash to the balance sheet, which amounted to 1.0 billion euros in June 2022 (or 1.9 billion including short-term investments), and €0.5 billion to €0.6 billion in annual free cash flow (FCF) generation adjusted by Moody’s for early repayment of debt or accretive acquisitions on EBITDA.

Moody’s forecast takes into account the growing likelihood of a recession in the coming quarters, but that this will not materially change the company’s deleveraging over the next 12 to 18 months. Moody’s believes that global travel volumes have been relatively resilient during previous economic downturns, while year-over-year comparables for Amadeus will remain favorable through the first quarter of 2023. Indeed, previous periods have been significantly affected by pandemic-related travel restrictions.

Amadeus’ Baa2 rating also reflects the company’s leading position in the global distribution services (GDS) market; a track record of strong growth and profitability and cash flow, despite the disintermediation risks associated with the GDS model; and the diversification provided by its Air IT Solutions division, which relies on long-term contracts.

The rating also reflects several challenges inherent in the GDS industry, including the risk of disintermediation by airlines; the risk of emergence of alternative distribution models; the inherently cyclical nature of the travel industry; and exposure to exogenous shocks (eg, terrorism and pandemics), as well as potential cybersecurity threats and system disruptions.


As of June 30, 2022, the company’s liquidity was strong at €2.0 billion, consisting of €1.0 billion of balance sheet cash and a non-revolving credit facility (RCF). drawn down from 1.0 billion euros maturing in 2025. The RCF has no pacts. The aforementioned liquidity does not include €0.9 billion of short-term investments, which Moody’s says have maturities of up to six months and could therefore be used as an additional source of liquidity.

Moody’s expects Amadeus to generate approximately €0.5-0.6 billion per year of Moody’s Adjusted FCF over the next 12-18 months, equivalent to approx. 12-13% of Moody’s total adjusted debt, which is calculated before debt repayments but after scheduled dividends. Together with the aforementioned liquidity, Moody’s estimates that this will be sufficient to cover up to €0.5 billion of debt maturities expected in 2023 and up to €1.25 billion of debt maturities expected in 2024. (assuming no capital market activity refinances these maturities).


Amadeus has a senior unsecured euro medium term note (EMTN) program in place, under which the company is the sole issuer. The provisional (P)Baa2 rating assigned to the senior unsecured EMTN program is aligned with Amadeus’ Baa2 long-term issuer rating. In April 2020, the company issued €750 million of senior unsecured convertible bonds due 2025, which rank pari passu with the aforementioned senior unsecured EMTN program.


The stable outlook reflects Moody’s expectation that Amadeus will continue to improve its financial performance such that Moody’s adjusted leverage falls towards 2.0x by December 2023 and below 2.0x during 2024, with Moody’s Adjusted FCF generation improving to 10-15% of Moody’s Adjusted Debt over the next 12-18 months.


Upward pressure on Amadeus’ ratings could develop if Moody’s Debt/Adjusted EBITDA is maintained below 1.5x, with Moody’s FCF/Adjusted Debt above 15%, both on a lasting basis.

Negative pressure on ratings could develop if Moody’s-adjusted debt/EBITDA remains above 2.0x or if FCF/debt declines sustainably towards 10%. Negative pressure on ratings could also arise if there are increasing levels of disintermediation away from the GDS model or if significant alternative distribution channels emerge.


The main methodology used in these ratings is that of business and consumer services published in November 2021 and available on Otherwise, please see the Scoring Methodologies page on for a copy of this methodology.


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Fabrice Marchesi
Vice President – Senior Analyst
Corporate Finance Group
Moody’s France SAS
96 Boulevard Haussman
Paris, 75008
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Jeanine Arnold
Associate General Manager
Corporate Finance Group
JOURNALISTS: 44 20 7772 5456
Customer service: 44 20 7772 5454

Release Office:
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JOURNALISTS: 44 20 7772 5456
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