Moody's eyes Vivo Energy for downgrade

Moody's Investors Service said it placed the Baa3 long-term issuer rating of Vivo Energy plc and the Baa3 guaranteed senior unsecured notes issued by Vivo Energy Investments BV on review for downgrade. The outlook has changed to under review from negative.

The review follows Vivo Energy’s annoucement confirming that its shareholders approved a cash offer from a wholly owned, indirect subsidiary of Vitol Investment Partnership II Ltd., to sell the entire issued share capital of Vivo Energy except for the 36% stake which Vitol Group already owned, the agency said. The offer, which values Vivo Energy at $2.3 billion, is expected to close in the third quarter of 2022 once sanctioned by the court.

“The review for downgrade reflects the uncertainty on Vivo Energy's credit profile as a result of the transaction and change in ownership to a more concentrated shareholding structure. The review will focus on the credit linkages between Vivo Energy and Vitol Group as well as how the transaction will be funded and if there is additional debt that Vivo Energy will need to support outside of the restricted group,” Moody’s said in a press release.

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