S&P shifts Vivo Energy view to stable

S&P said it revised Vivo Energy plc’s outlook to stable from negative and affirmed the BB+ ratings on the company and its senior unsecured debt.

“Following the easing of pandemic-related restrictions, Vivo's trading performance rebounded in the second half of 2020, driven by its retail segment. We expect this trend to continue in 2021, underpinned by the expansion of the sites network by about 90-110 units, and by robust margin contributions, with retail EBITDA growing to $230 million-$250 million at the end of the year, in line with pre-pandemic levels. We anticipate further upside in 2022, as vaccine penetration increases and volumes exceed 6 billion liters (compared to 5.9 billion liters in 2019),” S&P said in a press release.

The outlook mirrors the view the company will continue recovering and posting a sound operating performance while keeping its moderate financial policy, supporting debt to EBITDA of less than 1.5x, over the next 12 months, the agency said.

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