Standard & Poors Raise Sol Melia’s Corporate Credit Rating from Stable to Positive

The credit rating agency, Standard & Poors, has raised Sol Melia’s outlook from “stable” to “positive”, in view of the company’s improved financial profile registered in recent years and also, as a result of its debt reduction policy.

The credit rating of the hotel chain lead by Gabriel Escarrer Julia, is now set at BB+ with a positive outlook, which represents a possible step towards the concession of the ‘investment grade’.

This upgraded rating from the prestigious agency has been awarded following four years in which there has been no change in the same and just a few months after it’s counterpart, Moody’s, awarded Sol Melia a credit rating of “investment grade” in February this year, thanks, also, to a combination of debt reduction and an improvement in results, amongst other factors.

The results obtained by Sol Melia in 2006 exceeded the market expectations, achieving an increase of 7.9 percent in income, 13.2 percent in EBITDA and 51.2 percent in net profits. These figures are the result of the positive impact of the company’s Asset rotation policy, which has been developed over the past few years.

The figures also reflect the company’s leading position in both Spanish city and resort hotels and the geographic diversification provided by its Caribbean resorts and time share (Sol Melia Vacation Club) businesses.

The large number of Sol Melia’s Spanish hotels, which account for 48 percent of the company’s rooms, and a similar percentage in terms of operational profits, are also a positive factor when establishing the company’s rating, as Spain continues to be the second most visited country in the world (after France).