Moody's has increased the corporate family rating of OYO's parent company, Oravel Stays Limited, to "B2" from "B3"

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The rating agency has maintained a stable outlook for the travel technology firm, which has seen a financial turnaround in recent quarters

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Sweta Patodia, associate vice president and analyst at Moody's, attributed the upgrade to OYO's increased profitability in recent quarters

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The news follows on the heels of OYO's proposed refinancing of its existing term loan with another lender

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Once completed, the transaction will likely reduce the startup's refinancing risk

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Moody's gave a "B2" rating to the proposed $825 Mn senior secured term loan facility to be used by the OYO’s subsidiary, Oravel Stays Singapore Pte. Ltd

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Moody's anticipates OYO's profitability to rise further following the successful merger of G6

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Rating agency also stated that OYO’s acquisition of French company Checkmyguest (CMG) in July of this year will pave the way for an increase in earnings

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Moody's said that "sustained improvement in operating performance" resulted in $56 million in EBITDA for OYO in H1 FY25

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OYO became profitable in FY24, posted a net profit of INR 229.5 crore. Income from operations fell 1.3% to INR 5,388.7 Cr in FY24, from INR 5,463.9 crore in FY23

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