KBRA Affirms BB- Issuer Rating With Stable Outlook for Vista Global Holding Limited

KBRA affirms its BB- issuer rating, with a Stable Outlook, for Vista Global Holding Limited (Vista Global). Vista Global, headquartered in Dubai, United Arab Emirates, is the holding company of a global business aviation platform that offers flights through its two subsidiaries, VistaJet and XO. Vista Global operates a dedicated fleet of 266 aircraft, including ultra-long range, large cabin, super-mid cabin, midsize cabin, light jet, and shuttle aircraft.

Key Credit Considerations

The issuer rating reflects the company’s strengthened business profile; meaningful market position as one of largest business jet operators in the sector; significant contracted revenue from a large, diverse, and global customer base, as well as strong cash flow generation. This is supported by a best-in-class aircraft fleet, stable aircraft utilization rates and limited capital expenditure requirements. The rating affirmation also considers improved credit metrics, manageable debt maturity profile, successful integration of recent acquisitions, and a robust presence in capital markets, enhancing its financial flexibility. Vista has been highly acquisitive in recent years, as the company focused on growth strategy. KBRA views Vista’s demonstrated ability to successfully integrate acquisitions and realize planned synergies while maintaining stable credit metrics favorably. Vista is expected to pivot towards a more organic investment over the medium term, de-emphasizing acquisitive growth and focusing on increasing aircraft utilization rates. The rating remains constrained by the highly cyclical nature of the aviation industry, with exposure to intense competition in a highly fragmented market. However, KBRA notes that business aviation, specifically the segment that Vista Global targets, is generally less cyclical and tends to more closely track economic growth and corporate profitability, making it less volatile than the commercial segment.

KBRA’s Stable Outlook for Vista Global reflects our expectations that profitability and credit metrics will continue to improve over the next 12-18 months supported by higher fleet utilization rates.

Rating Sensitivities

We could revise the Stable Outlook to Negative, or lower the rating, if demand weakens, causing sustained deterioration in the company’s performance and liquidity. We could revise the Outlook to Positive if financial performance is stronger than we anticipated, leading to lower leverage and an improved liquidity position.

KBRA reviewed the ratings using its Airline Global Rating Methodology, published on August 10, 2016, and its ESG Global Rating Methodology, published on June 16, 2021.

To access rating and relevant documents, click here.

Methodologies