S&P rates VistaJet notes B-

Standard & Poor’s said it assigned a preliminary B+ long-term corporate credit rating to VistaJet Group Holding SA.

The agency also said it assigned preliminary B- ratings to VistaJet Malta Finance plc’s proposed $300 million unsecured fixed-rate notes due 2020, guaranteed by VistaJet Group Holding.

The outlook is stable.

The final ratings will depend on VistaJet’s successful issuance of the senior unsecured notes and confirmation that VistaJet will continue to have adequate liquidity following the bond issuance, S&P said.

The ratings reflect the company’s strong competitive position in the private jet industry, partly offset by its high leverage, the agency said.

The company’s profitability is unlikely to be as volatile as that of the general aviation industry due to its wealthy customer base, whose spending habits tend to be less affected by economic conditions than those of the general public, S&P said.

VistaJet’s near-global reach should act as a key barrier to entry, as the company is able to serve a large proportion of the globe without charging for empty return flights to its customers, the agency said.

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