topstockalerts
Fitch Ratings revised its outlook on Travel + Leisure to Positive from Stable and affirmed the company’s long-term issuer default rating at BB-. Fitch also affirmed its senior secured revolving credit facility, term loans and senior secured notes at BB+, with an RR2 recovery rating. The Positive outlook reflects expectations that leverage will eventually fall below 3.5x EBITDA, supported by steady visitation, higher volume per customer and acquisition synergies.
Fitch expects leverage to rise moderately to 3.7x in 2026 from 3.6x in 2025 before declining to about 3.4x by 2028. The company’s position among the top three timeshare operators, recurring and largely prepaid revenue model, and flexible inventory investment support consistent positive free cash flow. Fitch estimates revenue will grow at a low- to mid-single-digit rate from 2026 through 2029, with EBITDA margins around 25%-26% through 2028.
$TNL
