TRG Property Sales

The Resort Group PLC accorded Investment Grade rating by Arc Ratings

ARC Ratings S.A. a fully accredited European Commission Rating Agency accorded The Resort Group PLC (TRG) a corporate ‘BBB-’ rating due to The Groups strong business model, partnerships with international hotel brands and low leverage. The ratings come as The Resort Group PLC prepare for the December launch of MELIÃ Llana Beach Hotel and Sensimar Cabo Verde (TUI Group), which will increase The Group’s market share to 46.9% of the 5-star resort segment in Cape Verde.

Moreover, ARC also accorded a ‘BBB+’ rating with a stable outlook to the secured notes programme issued by Escher Marwick PLC and Audley Funding PLC for their exchange traded products that acquire interests in hotel rooms, suites and apartments from The Resort Group PLC in Cape Verde.

The enhanced ratings are due in part to the significant recovery position brought about by the underlying commercial strength of The Resort Group PLC and the strong business model of working with several partners. ARC cited The Resort Group PLC’s ability to attract strong international hotel brands, namely Melià, Sensimar (TUI group) and Hilton as well as the huge benefits from the significant guaranteed occupancy offered by international tour operators. Accorded a medium to long-term rating with a stable outlook, the rating comes as a reinforcement for the long-term investment strategy pursued by The Resort Group PLC.

Rob Jarrett, CEO of The Resort Group PLC, said: “These investment-grade credit ratings validate the strength of our business model and our ability to meet the needs of leading international hotel brands and tour operators in a comprehensive and forward-looking manner. TRG has the largest resort and hotel pipeline in Cape Verde, an increasingly important tourist destination. We are excited about the future and our continued growth as a world-class luxury resort hospitality company.”

Approved by The European Commission in October 2016, ARC’s rating mapping tables are awarded the same status as the ‘big three’ credit rating agencies meaning they can be used for capital relief purposes under the standardised and ratings based approach, as well as under Solvency II.

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