Moody's upgrades Thevelia

Moody's Investors Service said it upgraded Thevelia Holdings Ltd.'s corporate family rating to B1 from B2. Moody's also upgraded to B1 from B2 the rating on the $760 million senior secured first-lien term loans due 2029, borrowed by Thevelia (US) LLC and the euro- and dollar-denominated senior secured first-lien term loans due in 2029, co-borrowed by Thevelia (US) and Thevelia Finance, Sarl. These term loans are guaranteed by most of the group's companies.

The outlooks are stable. Previously, the ratings were on review for upgrade.

This rating action ends the review for upgrade started on March 20, following the regulatory approvals for and completion of Thevelia's acquisition of Vistra Group Holdings (BVI) I Ltd. on Thursday, the agency said.

"The upgrade reflects Thevelia's significantly stronger scale and geographical diversification following its acquisition of Vistra, and our expectation that the combined entity will improve its financial metrics primarily through revenue growth and cost synergies," said Stephanie Lau, a Moody's vice president and senior credit officer, in a press release.

The agency said it forecasts Thevelia's adjusted debt/EBITDA to rise to about 7.1x (pro forma for the completion of the acquisition financing) in 2023 from 6.1x in 2022 and then likely decline to about 5x-6x in 2024-25.

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