Skift Take
This upgrade is a testament to Oyo's strengthening financial position and the broader positive trends within India's hospitality industry.
Global rating agency Fitch Ratings has upgraded Oyo-parent company Oravel Stays’ long-term rating to "B" from "B-" with a "stable" outlook.
The Fitch upgrade comes shortly after Oyo reported its first-ever profitable year. During a townhall with staff last week, Oyo founder and CEO Ritesh Agarwal said the company had net income of nearly $12 million and an EBITDA of $107 million for fiscal 2024.
Fitch also upgraded the rating on Oyo’s senior secured term loan facility of $660 million, of which $448 million is still outstanding, from "B-" to "B." The $448 million in debt is maturing in June 2026.
In June 2022, Fitch had downgraded Oravel Stays’ ratings from 'B' to 'B-'citing significant uncertainty about Oyo’s ability to achi