S&P ups Vista, rates notes B-

S&P said it raised Vista Global Holdings Ltd.’s issuer rating to B+ from B and its senior unsecured notes to B- from CCC+ and rated its planned $800 million of senior unsecured notes B- with a 6 recovery rating. The 6 recovery rating reflects an expectation of negligible (rounded estimate: 0%) recovery prospects in default.

“We believe Vista Global is set to outperform its strong 2021 results this year and its expanding subscription membership provides critical scale and forward cash flow visibility. Vista Global's trading performance remained strong in fourth-quarter 2021 and the group continued to add new members to its subscription programs while demand for its on-demand services held up. In our view, the group's medium-term demand prospects are also favorable,” S&P said in a press release.

The agency noted business jet flight hours have increased to almost 2x, faster than U.S. GDP over the past 10 years, and the pandemic's effects on commercial aviation and health concerns related to air travel may lead to a structural shift in the aviation industry toward using more private jets for travel.

Vista will use the proceeds to refinance its $700 million of senior unsecured notes due 2024.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.