S&P Global Ratings lowered its outlook on private jet operator Vista Global Holding to negative from stable, citing a disappointing financial performance in 2023 that fell short of expectations. S&P affirmed Vista’s ‘B+’ credit rating.
“Private jet operator Vista Global Holding (Vista’s) weaker-than expected operating performance and higher interest costs in 2023 resulted in S&P Global Ratings-adjusted funds from operations (FFO) to debt being well below 12%,” said S&P in its rating commentary.
The ratings agency said a key metric for creditworthiness, adjusted FFO to debt, fell bellow the 12% threshold S&P considers healthy for a ‘B+’ rating.
This stemmed from a decline in profitability and higher costs. Vista Global Holding’s adjusted EBITDA, a measure of profitability excluding one-time items, dropped by 4% to $670m in 2023. S&P had forecasted a range of $820-850m.
S&P forecasts some improvement in Vista’s performance over the next two years, driven by…