Victoria Plc - comment

Fitch downgraded Victoria Plc bonds to CCC+, reflecting the market view of a difficult refinancing task for the Company with its upcoming bonds. We reiterate our reservations about a new Senior bond refinancing the 2026 bonds and subordinating the 2028 bonds but this remains the market’s base case assumption.  

Fitch’s expectations is for a prolonged delay to in the recovery of theunderlying market which will exacerbate the company's refinancing risk in FY26. Fitch expects FCF to remain negative across FY25-FY28 due to limited EBITDA, higher interest costs and strained working capital.