S&P lifts Victory Capital

S&P said it raised its ratings for Victory Capital Holdings Inc. and its debt to BB from BB-.

Victory stakeholder Crestview Partners reduced its equity interest to 18% as of January and cut its representation on the company's board to two seats out of nine. Simultaneously, Reverence Capital Partners divested nearly all its shares and no longer has a board seat.

“The upgrade reflects our view that the company will now pursue a more conservative financial policy,” S&P said in a press release.

“Victory's leverage also supports the upgrade. We estimate the company ended 2023 with leverage around 3x. In 2024, we expect relatively flat earnings, given margins of around 49% and flat assets under management (AUM),” the agency added.

The outlook is stable.

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