Unfavorable business conditions and a shift in focus will likely result in slower revenue and EBITDA growth for Vistra Holdings Ltd. Slower growth, combined with debt-funded acquisitions, resulted in debt leverage staying elevated at more than 7.0x. We are not expecting meaningful deleveraging in 2025 and 2026. On Sept. 17, 2025, we lowered our long-term issuer credit rating on Vistra to 'B' from 'B+'. We also lowered our issue ratings on the first-lien term loans that the company guarantees to 'B' from 'B+'. The recovery rating remains at '3' with recovery prospects unchanged at 55%. The stable outlook reflects our view that Vistra will grow its topline at 5%-7% and improve free operating cash flow (FOCF). This should help the
