Fitch revises Arqiva to stable

Fitch Ratings said it affirmed Arqiva Financing plc and Arqiva PP Financing's whole business securitization bonds at BBB and Arqiva Broadcast Finance plc's high-yield bonds at B-, and revised the outlooks to stable.

Fitch said the outlook revision reflects the revised business plan put in place by the new management team and the ongoing operational restructuring, including a focus on core business lines and operational efficiency. The agency will continue to monitor the progress of the business plan against expected milestones.

Arqiva's ratings reflect its gradual expected deleveraging, in line with its largely contracted revenue profile and resilience to RPI and Libor sensitivities. The agency expects net debt to EBITDA to fall to under 3 times by 2025 from 5.8 times in fiscal 2016 and to close to 0 times by fiscal 2030. This is broadly in line with previous reviews.

The deleveraging profile of the high-yield bonds is consistent with previous reviews, falling to 6.1 times in fiscal 2020 at maturity from 7.1 in fiscal 2016, Fitch explained.

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