Moody's rates VistaJet notes B3

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Vista Global Holdings Ltd.

Moody's also said it withdrew the B2 corporate family rating and B2-PD probability of default rating on XO Americas Holding Inc.

This action is driven by changes to the group's corporate structure, whereby Vista Global Holdings Ltd. is now the consolidated parent entity for the business aviation solution provider, the agency said.

Moody's also said it assigned a B3 instrument rating to the proposed $525 million senior unsecured notes due 2024 co-issued by XO Management Holding Inc. and VistaJet Malta Finance plc.

The outlook is stable.

The ratings reflects the company's strong position in the market for corporate jet travel, significant contracted revenues from a diverse customer base, high utilization rates and meaningful free cash flow, the agency said.

The ratings are constrained by its exposure to cyclical demand, relatively high financial leverage and still competitive, highly fragmented market, Moody's said.

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