Moody's Elevates OYO's Rating Amid Strategic Acquisitions and Debt Overhaul

Moody's has upgraded the corporate family rating of Oravel Stays Limited, OYO's parent company, due to a strategic refinancing plan and US-based Motel 6 acquisition. This move is expected to lower interest expenses and lead to positive cash flow by FY25-26. The company's enhanced financial outlook reflects stable earnings projections.

In a significant upgrade, Moody's has revised the corporate family rating of Oravel Stays Limited, OYO's parent company, reflecting improvements in its financial strategy and acquisition plans.

Moody's announced a B2 rating for OYO Singapore's upcoming $825 million senior secured term loan. Backed by Deutsche Bank, this loan will ease refinancing pressures and fund the proposed $525 million acquisition of Motel 6, enhancing OYO's market presence.

According to Moody's, reducing interest expenses and ongoing earnings growth position OYO to achieve positive cash flow by FY25-26. This stable outlook marks a pivotal financial turnaround for the company, providing robust credit metrics aligned with its improved rating.

(With inputs from agencies.)