Victoria credit ratings reaffirmed by Fitch

5th Oct 2023 12:13

(Sharecast News) - Flooring firm Victoria announced on Thursday that Fitch had affirmed its credit rating on the company, verifying the long-term issuer default rating (IDR) at 'BB-' and maintaining a stable outlook.

The AIM-traded company noted that the rating agency corroborated its senior secured notes at 'BB+' with a recovery rating of 'RR2'.

It said a critical element supporting the standing was Victoria's strategic focus on higher-end customers, underpinning its current market status and fortifying its capability to deflect incremental costs without substantially impacting volume, even amid recessive economic conditions.

"The stable outlook reflects the group's strong ability to integrate its new acquisitions, resulting in incremental EBITDA across the rating horizon to 2026," Fitch said in its rating.

"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 generation to promote deleveraging from 2025."

At 1245 BST, shares in Victoria were down 6.37% at 446.14p.

Reporting by Josh White for Sharecast.com.