Moody’s drops Victoria view to negative

Moody’s Investors Service said it changed its outlook for Victoria plc to negative from stable and affirmed the B1 ratings on the company and its €250 million and €500 million of backed senior secured notes.

“The change in outlook reflects Moody's expectations that the demand for flooring products will reduce in 2023, specifically in the E.U. and the U.K. due to weaker macroeconomic conditions, reduction in construction activity and, to less extent, refurbishment activity. Moody's expects that weaker demand and rising costs will make it more difficult for Victoria to sufficiently increase prices and protect its margins,” the agency said in a press release.

On the plus side, Moody’s said its sees relatively limited volume declines since the issuer focuses on the refurbishment segment rather than new homes. It also noted the company’s increasing penetration in the U.S. market, which has been better than the European market.

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