S&P slashes Vida

S&P said today it lowered its ratings on Vida Capital Inc. and its first-lien secured debt to CCC from B-. The recovery rating on the company's first-lien debt remains at 4, indicating average recovery (40%) in default scenario. The outlook is developing.

“The downgrade reflects our expectation that Vida Capital's EBITDA will decline in 2022 due to lower management and origination fees. Assets under management (AUM) declined over the past two years due to the 10.3% write-down of its flagship Vida Longevity Fund (VLF) following changes to life expectancy assumptions in fourth-quarter 2020 and subsequent redemptions from the fund,” S&P said in a press release.

The agency warned, “The downgrade and outlook also reflect our view that the company's liquidity position is under stress, and without a favorable operating environment or other liquidity sources, the company will not be able to meet its liquidity needs over the next 12 months.”

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