Moody's changes Victoria view to stable

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

“The change in outlook reflects improving operating performance achieved by Victoria this year with like-for-like revenue growing by 30% in the H1 fiscal 2022 ended September and Moody's adjusted leverage pro-forma for the acquisitions reducing to around 4x. The performance has been strong across all the company's segments, including soft flooring and ceramic tiles, although with somewhat weaker comparables in H1 fiscal 2021 (March to September 2020) when like-for-like sales were down by 13% due to the impact of the pandemic,” the agency said in a press release.

The agency said it sees Victoria maintaining its positive momentum in sales, although margins will likely see some headwinds from the cost inflation over the next 12 months.

“The outlook also assumes that the company will focus on adhering to its financial policy of maintaining net reported leverage at below 2x on a steady state basis and below 3x to finance acquisitions,” Moody’s said.

© 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.