Moody’s cuts Victoria

Moody's Investors Service said it downgraded Victoria plc’s ratings, including its corporate family rating to B2 from B1, its probability of default rating to B2-PD from B1-PD and the rating of its €250 million and €500 million backed senior secured notes to B2 from B1. Also, the agency changed the outlook to stable from negative.

“The downgrade of Victoria's CFR to B2 from B1 reflects the company's weak operating performance in the fiscal year ending in March 2023 (fiscal 2023) against Moody's previous forecasts. Additionally, the rating agency considers that there is a meaningful risk that refurbishing activity remains subdued over the next 12-18 months as the property market is negatively impacted by higher interest rates,” the agency said in a press release.

Moody’s said it forecasts Victoria’s Moody's-adjusted leverage to stay above 5x in fiscal 2024.

“The outlook also assumes that Balta and the recent set of acquisitions will be integrated successfully and deliver meaningful and increasing synergies in fiscal 2024 and fiscal 2025, as well as the company's focus on adhering to its financial policy of reducing net reported leverage to around 2.25x ahead of the refinancing of the outstanding bonds,” Moody’s added.

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