S&P downgrades VistaJet

S&P said it lowered the corporate credit rating on VistaJet Group Holding Ltd. and its core subsidiaries, VistaJet Malta Finance plc and VistaJet Co Finance LLC, to CCC+ from B-.

The outlook is negative.

The agency also said it lowered the rating to CCC- on the $300 million notes issued by VistaJet Malta Finance and VistaJet Co Finance, which are guaranteed by VistaJet.

The downgrades and negative outlook are due to an opinion that VistaJet will likely default on its debt obligations or seek material modification to its financial leasing obligations, S&P explained.

The agency said it estimates the company's financial leasing and interest obligations for the 18 months until Sept. 30, 2018, are $575 million and that these can be fully served only if the company receives a material equity injection or if the company re-negotiates its repayment profile.

Any re-negotiation of payment also may be considered a distressed restructuring, S&P said.

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