TripAdvisor downgraded to B+ by S&P with stable outlook

S&P Global Ratings downgraded its issuer credit rating and issue-level ratings on Tripadvisor to ‘B+’ from ‘BB-‘. S&P said: “The downgrade to ‘B+’ reflects our view that Tripadvisor’s leverage remains high for the current rating due to an unfavorable business mix and near-term softness in the company’s metasearch business.” S&P expects profitability for Tripadvisor will remain pressured in 2023 as its strong revenue growth is offset by a new operating plan to drive engagement and continued investments in its less profitable businesses like Viator and TheFork. The stable outlook reflects the view that Tripadvisor’s leverage will likely improve to the low-3x area in the next 12 months as the company’s recent new monetization strategy and increased competition in the hotel metasearch business partially offset healthy online travel trends.