Moody’s lifts Kiwi VFS

Moody’s Investors Service said it upgraded Kiwi VFS SUB I Sarl’s corporate family rating to B1 from B2 and the probability of default rating to B1-PD from B2-PD. Moody’s also upgraded the ratings to B1 from B2 for the $39 million revolver due 2023, for the $51 million guaranteed senior secured revolver due 2023, for the £341 million senior secured term loan B1 due 2024 and for the €363 million senior secured term loan B2 due 2024. All the facilities were borrowed by Kiwi VFS SUB II Sarl and guaranteed by Kiwi VFS SUB I Sarl.

“The upgrade was prompted by the company’s improved credit metrics in line with Moody’s stated upgrade triggers as it delivers on its growth strategy through consolidation of the 2017/2018 acquisitions, plus strong organic growth from new contracts, higher visa application volumes, and value-added services. Moody’s adjusted leverage decreased to 4.3x in LTM September 2019 from 5.1x in PF2018, and retained cash flow (RCF)/net debt increased to 11.7% from 7.2% in the same period. The company’s double-digit organic growth is expected to continue well into the forecast period resulting in further deleveraging,” said the agency in a press release.

The outlook is stable.

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