Press Release

DBRS Morningstar Assigns Provisional Rating of BBB (low), Stable, to Elis S.A.’s EUR 300 Million Senior Unsecured Notes Issuance

May 17, 2022

DBRS Ratings GmbH (DBRS Morningstar) assigned a provisional rating of BBB (low) with a Stable trend to the proposed EUR 300 million Senior Unsecured Notes (the Notes) issued by Elis S.A. (Elis or the Company). The Notes are to be issued under the Company’s EUR 4 billion Euro Medium Term Note Programme. The Notes will mature in 2027, have a 4.125% coupon and rank pari passu with all other existing unsecured and unsubordinated obligations of Elis. The rating being assigned is based upon the rating on already-outstanding series of the above-mentioned debt instrument.

The current ratings reflect DBRS Morningstar’s view that Elis’ sound business profile will support the Company’s ability to efficiently manage current inflationary pressures. Over the past two years, Elis has taken a number of measures that have allowed it to withstand the unprecedented Coronavirus Disease (COVID-19) disruptions and DBRS Morningstar considers that the Company’s efforts with regards to cost containment together with its pricing power will help lessen the impact of high energy costs and wage inflations, amongst other things. On 10 May 2022, Elis released its first quarter trading update, confirming a strong rebound in the Hospitality segment, which together with the inherent stability of the Company’s other business segments give DBRS Morningstar comfort that the Company’s 2022 guidance is achievable. As such, DBRS Morningstar expects that the Company’s credit metrics will continue to support the ratings going forward.

In 2022, DBRS Morningstar expects the Company’s financial metrics to remain consistent with a low investment-grade rating (i.e., DBRS Morningstar-adjusted debt-to-EBITDA of around 3.5 times (x) and DBRS Morningstar-adjusted cash-flow-to-debt of around 25%). Elis’ strong business risk profile, expectation of free cash flow surpluses, and management’s efforts and commitment to manage leverage in a conservative manner all give DBRS Morningstar comfort that these credit metrics are achievable on a sustainable basis. However, if the effect of inflationary pressure, in particular on energy cost, and geopolitical turbulence negatively affect Elis’ earnings, cash flows, and leverage metrics, DBRS Morningstar could consider a negative rating action. In addition, a return to more aggressive financial policies or debt funding for large acquisitions could lead to a negative rating action. On the other hand, DBRS Morningstar could take a positive rating action if the Company improves its operating performance and financial metrics (i.e., debt-to-EBITDA of or less than 3.0x and cash-flow-to-debt of higher than 30% on a sustained basis).


A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework can be found in the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings at

All figures are in euros unless otherwise noted.

The principal methodology is Rating Companies in the Services Industry (28 January 2022,, which can be found on under Methodologies & Criteria. Other applicable methodologies include the DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (17 May 2022,

The primary sources of information used for this rating include Elis’ audited and interim financial statements, investor presentations, forecasts, budgets, and presentations provided by Elis. DBRS Morningstar considers the information available to it for the purposes of providing this rating to be of satisfactory quality.

DBRS Morningstar does not audit the information it receives in connection with the rating process, and it does not and cannot independently verify that information in every instance

Generally, the conditions that lead to the assignment of a Negative or Positive trend are resolved within a 12-month period. DBRS Morningstar trends and ratings are under regular surveillance.

For further information on DBRS Morningstar historical default rates published by the European Securities and Markets Authority (ESMA) in a central repository, see: DBRS Morningstar understands further information on DBRS Morningstar historical default rates may be published by the Financial Conduct Authority (FCA) on its webpage:

This rating is endorsed by DBRS Ratings Limited for use in the United Kingdom.

Lead Analyst: Giuseppe Fresta, Senior Vice President
Rating Committee Chair: Charles Halam-Andres, Managing Director
Initial Rating Date: 28 March 2019
Last Rating Date: 16 March 2022

DBRS Ratings GmbH, Sucursal en España
Paseo de la Castellana 81
Plantas 26 & 27 28046 Madrid
Tel. +34 (91) 903 6500

DBRS Ratings GmbH
Neue Mainzer Straße 75
60311 Frankfurt am Main Deutschland
Tel. +49 (69) 8088 3500
Geschäftsführer: Detlef Scholz
Amtsgericht Frankfurt am Main, HRB 110259

-- Rating Companies in the Services Industry (28 January 2022),
-- DBRS Morningstar Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (17 May 2022),

Information regarding DBRS Morningstar ratings, including definitions, policies, and methodologies, is available on