S&P changes Vida Capital view to negative

S&P said it affirmed its B issuer credit and secured debt ratings on Vida Capital Inc. and revised the outlook to negative from stable. The recovery rating on the debt issues remains 4, indicating an expectation for an average (40%) recovery in default.

“Vida’s cash flow generation during the first nine months of 2020 was below our expectations as a result of stagnant management fee growth, a 29% decrease in origination and servicing fees relative to the same period of 2019, and negligible realized carried interest,” S&P said in a press release.

The outlook reflects an expectation Vida could operate with leverage above 5x during the next 12 months due to lower cash flow generation, the agency said.

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