Research Update: Thevelia Holdings And Vistra Group Upgraded To 'B+' On Completed Vistra Acquisition; Off CreditWatch; Outlook Stable

Thevelia Holdings Ltd. has completed its acquisition of Vistra Group Holdings (BVI) I Ltd. The acquisition has significantly enlarged the company's scale, geographical footprint, and offerings in the corporate service industry. We raised the long-term issuer credit ratings on Thevelia and Vistra to 'B+' from 'B'. We assess Vistra as a core subsidiary of Thevelia after the acquisition. At the same time, we raised our long-term issue credit ratings on the first-lien term loans that Thevelia (US) LLC issued to 'B+', from 'B'. The recovery rating remains at '3', although recovery prospects have declined modestly to 55% from 65% given an increase in gross debt. We removed the ratings from CreditWatch where they were placed with positive implications on March

...- Thevelia Holdings Ltd. has completed its acquisition of Vistra Group Holdings (BVI) I Ltd. The acquisition has significantly enlarged the company's scale, geographical footprint, and offerings in the corporate service industry. - We raised the long-term issuer credit ratings on Thevelia and Vistra to 'B+' from 'B'. We assess Vistra as a core subsidiary of Thevelia after the acquisition. At the same time, we raised our long-term issue credit ratings on the first-lien term loans that Thevelia (US) LLC issued to 'B+', from 'B'. The recovery rating remains at '3', although recovery prospects have declined modestly to 55% from 65% given an increase in gross debt. - We removed the ratings from CreditWatch where they were placed with positive implications on March 16, 2023. - The stable outlook on the long-term ratings reflects our view that Thevelia will lower its debt-to-EBITDA ratio to below 7.0x in 2024 to early 2025, from more than 8.0x after the acquisition of Vistra. A stronger business...

Research Update