...Fitch Ratings's affirmation of Lavender Dutch BorrowerCo B.V.'s (Vestacy) Long-Term Issuer Default Rating (IDR) at 'BB-' with a Positive Outlook reflects the company's progress in its separation from Reckitt, including exiting the transition service agreement (TSA), appointing a new management team and factory optimisation. Vestacy's 'BB-' IDR reflects its moderately diversified portfolio of global and national leading consumer product brands and resilient demand supported by strong profitability (2026E: 20%), despite a soft and competitive consumer environment with unhedged commodity exposure. The Positive Outlook reflects Fitch's expectation of receding execution risks and reducing separation costs, which should materially improve free cash flow (FCF) from 2028. It also reflects the prospect of EBITDA leverage (2026F: 4.8x) falling below 4.5x....
