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 membership programs and on-demand charter options, utilizing either its fleet or those of its partners. Vista Global operates a dedicated fleet of 242 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 strong market position in the private aviation industry, leveraging a diverse service offering that serves a large, diverse, and global customer base. This is supported by a best-in-class aircraft fleet, growing aircraft utilization rates, and manageable maintenance capital expenditure requirements. The company’s recent completion of a comprehensive fleet refurbishment program, while temporarily impacting EBITDAR due to associated cost and downtime, positions Vista Global for long-term growth by enhancing passenger experience, improving fleet efficiency, and bolstering operational capabilities.

The rating affirmation also considers stable credit metrics, manageable debt maturity profile, successful integration of recent acquisitions, and a robust presence in capital markets, enhancing its financial flexibility. The company’s focus is now on organic growth, primarily through increasing aircraft utilization, as it de-emphasizes acquisition following an aggressive growth strategy via acquisitions in the past. 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.

Rating Sensitivities

The 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.

The Stable Outlook for Vista’s issuer rating could be revised to Negative, or the rating could be downgraded if demand weakens, causing deterioration in the company’s performance and liquidity for a sustained period. The Outlook could be revised to Positive over the next year if demand is stronger than we anticipated, leading to lower leverage and improved liquidity position beyond expectations.

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