S&P Upgrades Gate Gourmet Credit Rating

RESTON, Va., March 22 /PRNewswire/ -- Standard & Poor's has upgraded the credit rating on global airline caterer Gate Gourmet, which is co- headquartered in Reston, Va., and Zurich, Switzerland.

S&P raised its rating to "B" from "B-" and removed the ratings from CreditWatch. The rating service described Gate Gourmet's outlook as "stable."

"The upgrade reflects the better-than-expected improvements in Gate Gourmet's operating performance and financial risk profile," S&P said in its report. "This is the outcome of a number of initiatives taken by the group; most notably restructuring and cost-cutting efforts, a voluntary debt pre-payment, and a pension contribution."

S&P also described Gate Gourmet's liquidity position as adequate, and said that the stable outlook "reflects our expectations that Gate Gourmet will sustain its operating performance, with continued rationalization efforts offsetting recent contract renewals with tighter margins."

"This upgrade reflects the significant turnaround at Gate Gourmet and recognizes our excellent performance in the past year, following a successful restructuring and refinancing," said Guy Dubois, Executive Vice President, Chief Financial Officer and Chief Administrative Officer. "The company is extremely pleased with S&P's analysis, and we are focused on continuing our positive momentum."

Gate Gourmet is the world's largest independent airline catering and logistics company with dual headquarters in Zurich, Switzerland, and Reston, Virginia. It serves customers from 97 flight kitchens in 28 countries over 5 continents and reported 2006 revenue of 2.4 billion Swiss Francs. Visit our Web site at www.gategourmet.com.