LONDON, UK: Victoria PLC (LSE: VCP), the international designers, manufacturers and distributors of innovative flooring, advised that international credit rating agency Fitch Ratings yesterday affirmed the Company’s credit rating following a recent review that stated:
“Fitch Ratings has affirmed Victoria PLC’s Long-Term Issuer Default Rating (IDR) at ‘BB-‘ with a Stable Outlook. Fitch has also affirmed Victoria’s senior secured notes at ‘BB+’ with a Recovery Rating of ‘RR2’.
The rating balances Victoria’s high leverage with the group’s good diversification and strong market position. Victoria’s exposure towards higher-end customers supports its ability to pass on incremental costs without a major impact on their volumes in a recessionary environment.
The Stable Outlook reflects the group’s strong ability to integrate its new acquisitions, resulting in incremental EBITDA across the rating horizon to 2026. Despite a delay in deleveraging compared with Fitch’s expectations, strong working-capital management and limited growth capex are likely to result in positive free cash flow (FCF) generation to promote deleveraging from 2025.”