Moody’s turns Vivo outlook to negative

Moody’s Investors Service said it changed its outlook for Vivo Energy Ltd. and its subsidiary Vivo Energy Investments BV to negative from under review. The agency also confirmed Vivo’s Baa3 issuer rating and the Baa3 instrument rating of the $350 million of guaranteed senior unsecured notes due 2027 issued by Vivo Energy Investments.

These actions conclude the review for downgrade started on Feb. 10 and follow the confirmation of Vivo’s scheme of arrangement for the takeover its largest shareholder, Moody’s said.

“The negative rating outlook reflects Vivo Energy's change in ownership and financial policy. As a result of the transaction, there is a risk that debt could be pushed down to Vivo’s level, resulting in higher leverage and weaker coverage metrics for a sustained period of time. The negative outlook, therefore, reflects the expectation that Vivo Energy's financial risk profile will need to strengthen over the next few years through earnings and cash retention as well as growth in order to return to the parameters originally outlined as guidance,” Mood’s said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.