Vistra Holdings Ltd.

Overview Key strengths Key risks Largest provider of corporate services in Asia, with high customer retention. High leverage with debt-to-EBITDA ratio likely to be 6x-7x over the next 12 months. High recurring revenue with good visibility. Operations in fragmented markets. Stronger profitability than the industry average and rated direct peers. Material exposure to reputation and regulatory risk. The company's adjusted EBITDA in 2024 could underperform our previous forecast as higher exceptional spendings related to additional mergers and acquisitions (M&As) eat into cost synergies from the merger with Tricor Holdings Ltd. Weaker cost control during the integration phase will also weigh on Vistra's S&P Global Ratings' adjusted EBITDA in 2024. Steady topline growth for Vistra on the back of solid recurring

...Vistra Holdings Ltd. will likely deleverage slower than we expected. The company's adjusted EBITDA in 2024 could underperform our previous forecast as higher exceptional spendings related to additional mergers and acquisitions (M&As) eat into cost synergies from the merger with Tricor Holdings Ltd. Weaker cost control during the integration phase will also weigh on Vistra's S&P Global Ratings' adjusted EBITDA in 2024. Steady topline growth for Vistra on the back of solid recurring revenue and gradual synergy gains should drive EBITDA expansion over the next two years. We believe Vistra is progressing well on its integration plan and is instilling tighter cost control, after a spike in costs during the restructuring process. By migrating staff to lower cost locations, rightsizing duplicated staff, and redeploying frontline teams, the company should get back on the track of EBITDA growth....

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