Victoria Plc - comment

Moody's downgraded Victoria plc Senior Secured bonds to Caa1 from B3 keeping outlook negative, driven by the refinancing risk associated with upcoming RCF and bond maturities in February and August 2026 respectively. In line with our model, Moody's expect an improvement in operating performance for H2 ending March 25, but caution that the trajectory may be hampered by weak consumer demand.

There are consistent rumours of a new bond which would refinance the 2026s and prime the 2028s, but although this is possible, we still view a holistic deal is the most likely.