Thevelia Holdings Ltd.'s proposed acquisition of Vistra Group Holdings (BVI) I Ltd. will significantly enlarge Thevelia's scale, geographical footprint, and offerings in the corporate service industry. The stronger business profile of the combined entity will support free operating cash flow and deleveraging. We have therefore placed our 'B' long-term issuer credit rating on Thevelia and Vistra, and our 'B' issue rating on the first-lien term loans on both entities on CreditWatch with positive implications. The CreditWatch placement reflects the likelihood that we would raise the ratings by one-notch to 'B+' on completion of the transaction as proposed. We estimate Thevelia's revenue share in its core Asia market will increase to 10%-12% post the deal, from 6%-7%. This should position the
