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Oyo's loan prepayment: Moody's nearly doubles the EBITDA estimates

Fitch said that the move will improve Oyo's EBITDA and that they may take positive rating action

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Aryaman Gupta New Delhi

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Global credit rating agencies Fitch and Moody’s have termed Oravel Stays’ – the parent company of Oyo – move to repurchase $195 million of its outstanding debt as positive.

Fitch said that the move will improve Oyo’s EBITDA and that they may take positive rating action, while Moody’s expects Oyo to generate an adjusted EBITDA of around $90-$100 million for FY 2024, nearly doubling the EBITDA estimate from $50-55 million projected earlier this year (May 2023).

Oyo recently initiated part prepayment of its debt through a buyback process. The company will repurchase approximately $195 million – around 30 per cent

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First Published: Nov 16 2023 | 11:41 PM IST

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