S&P changes Victra outlook to stable

S&P said it changed its outlook for LSF9 Atlantis Holdings LLC (Victra) to stable from positive and affirmed its B ratings on the company and its secured debt.

“Victra's operating performance will likely remain pressured in 2024 amid softer customer discretionary spending on wireless device upgrades and accessories combined with low promotional activity at Verizon. After year-over-year revenue growth in 2022 following its acquisition of Go Wireless Holdings, Victra's net sales declined more than 9% during the third fiscal quarter (ended Sept. 30, 2023). Verizon retail box sales dropped roughly 12% due to less discounting and promotional activity.

“However, through its longstanding relationship with Verizon, Victra received meaningful incremental commissions to help offset lower sales volumes, which we anticipate it will continue to receive in the fourth quarter,” S&P said in a press release.

The agency said it expects Victra’s S&P Global Rating's-adjusted leverage to be in the low-5x area this year, and then decrease toward the high-4x area in 2024.

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