Moody's rates Vista notes B3

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Vista Global Holdings Ltd.

Moody's also said it withdrew the B2 corporate family and B2-PD probability of default ratings on XO Americas Holding Inc.

This was because of the changes to the group's corporate structure, whereby Vista Global Holdings is now the consolidated parent entity for the business aviation solution provider, the agency explained.

Moody's also said it assigned a B3 instrument rating to the proposed $525 million senior unsecured notes due 2024 co-issued by XO Management Holding Inc. and VistaJet Malta Finance plc.

The outlook is stable.

The ratings reflect the company's strong position in the market for corporate jet travel, significant contracted revenues from a diverse customer base, high utilization rates that enables a relatively cost efficient business aviation solution to its customers, meaningful free cash flow supported by modest capital investment needs and an elevated debt-to-EBITDA ratio of about 7x, Moody's said.

The ratings are constrained by its exposure to cyclical demand, relatively high financial leverage, still competitive, highly fragmented market and adequate liquidity profile, the agency said.

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