Press Release|Project Finance and Infrastructure
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KBRA Revises its Outlook to Stable From Negative; Affirms BBB+ Rating for FCT OL StadCo’s EUR320 Million Senior Secured Notes

4 Dec 2025   |   Dublin

Contacts

KBRA (Europe) revises its Outlook to Stable from Negative and affirms its BBB+ rating for FCT Olympique Lyonnais StadCo’s (StadCo) EUR320 million senior secured notes due June 2044. The affirmation and outlook revision reflects FCT StadCo’s (StadCo) ongoing robust financial performance as well as the successful appeal by the Club of the DNCG relegation which ensures that it remains in Ligue 1 and is permitted to play in Europe if successful qualification is achieved in the future. However, KBRA notes the Club must continue to work within the parameters set out by the DNCG as part of the successful appeal as a key focus to monitor for the future rating.

Key Credit Considerations

(+) Relegation Appeal Success

Following the decision by the DNCG to relegate Olympique Lyonnais to Ligue 2, the club initiated an appeal process that was subsequently successful. This ensures the club remains in Ligue 1 and is permitted to play in Europe if successful qualification is achieved. However, KBRA notes the club must continue to work within the parameters set out by the DNCG as part of the successful appeal.

(+) StadCo Financial Performance

StadCo performance has been robust throughout the 2024-2025 season, with secured revenue generation improving due to increased matchday ticketing and other revenue resulting from OL’s participation in the Europa League. Additionally, KBRA expects forecast secured revenues for the 2025-2026 season to exceed those of the KBRA rating case.

Surveillance Rating Rationale

Under KBRA’s rating and stress cases, the assigned revenues are sufficient to repay debt service. The rating is based on a KBRA Project Risk Score (KPRS) of Strong and a sound financial risk profile. Under the KBRA rating case, aggregate average and minimum debt service coverage ratios (DSCR) are 2.78x and 2.54x, respectively. These metrics, combined with fully amortising debt and strong cash flow resiliency, supports the BBB+ rating on the notes.

Outlook

The revised Stable Outlook reflects OL’s robust financial performance for the 2024-2025 season, which has continued into the 2025-2026 season. Additionally, KBRA considers the successful appeal against the DNCG’s decision to relegate the club to Ligue 2, meaning the club remains in the top division of French football while also being permitted to compete in European football if it can successfully achieve qualification. However, KBRA notes the club must continue to operate within the parameters set out by the DNCG in its appeal, which includes improving its liquidity position. This is a key focus for KBRA to monitor in the short to medium term.

Rating Sensitivities

An upgrade is unlikely as the club and, by extension, the issuer is indefinitely exposed to the risk of relegation.

A rating downgrade could occur should the club fail to comply with the parameters set out in the successful appeal and subsequently face further sanctions and/or relegation to Ligue 2 by the DNCG. Any such outcome that leads to reduced ticket prices, declining attendances, and limited commercial opportunities would negatively impact StadCo’s ability to generate revenues. Additional downwards pressure may arise if there are changes in ownership and/or commercial strategy.

ESG Considerations

Environmental Factors

During the 2021-2022 season, OL was certified as a Committed Club by Fair Play for Planet due to efforts to reduce its environmental impact. This included focusing on energy and water consumption, transport and accessibility, and waste management.

Social Factors

The Groupama Stadium supports social projects, serving as a valuable regional resource as a Community Innovation Centre. The stadium regularly hosts employment forums and job-seeking events in partnership with Pôle Emploi, the French national employment office, and Nes & Cité, a company that promotes social integration.

Governance Factors

OL is majority-owned by Eagle Football Group (HoldCo), which acquired a 77% shareholding from Mr. Jean-Michel Aulas in 2022. Eagle Football is an experienced football club owner with stakes in multiple clubs. Notably, 2.84% of OL Groupe is publicly traded on Euronext Paris, providing a more stringent level of oversight than some privately owned teams. KBRA understands there are no immediate plans to delist OL Groupe. The remaining ownership comprises 1.23% treasury shares and an 8.23% minority shareholding by Mr. Aulas through his holding company, Holnest.

To access ratings and relevant documents, click here.

Methodologies

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

This credit rating is endorsed by Kroll Bond Rating Agency UK Limited for use in the UK. Information on a credit rating’s endorsement status is available on its rating page at KBRA.com.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.

About KBRA Europe

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Kroll Bond Rating Agency Europe Limited is located at 2nd Floor, One George’s Quay Plaza, George’s Quay, Dublin 2, D02 E440, Ireland.

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