Moody’s points to ‘improvement in operating performance…robust demand…increasing earnings visibility…improving fleet utilization’.
Moody’s Ratings has upgraded Vista Global Holding Ltd.’s long-term corporate family rating.
Vista Global is the parent of flight providers VistaJet and XO.
The upgrade moves the company from B3 to B2.
It upgraded the probability of default rating to B2-PD from B3-PD.
It also assigned a B3 instrument rating to Vista’s $525 million backed senior unsecured notes currently in the market.
International Finance Review reports proceeds will be used to redeem $500 million of senior notes due in 2027.
Moody’s affirmed the Ba3 rating of the backed senior secured term loan and the B3 ratings of the existing backed senior unsecured notes issued by VistaJet Malta Finance P.L.C. and co-issued by Vista Management Holding Inc.
Moody’s outlook remained stable.
Vice President Dirk Goedde said, “The upgrade to B2 reflects Vista Global’s steady improvement in operating performance, supported by robust demand in the business aviation market, increasing earnings visibility from its growing Program membership base, and improving fleet utilization.”
He added, “At the same time, leverage remains elevated at around 5.3x at year-end 2025, and the company faces upcoming financial obligations, including a put option exercisable in September 2026, which constrains financial flexibility.”
Moody’s says its assessment comes as the private jet flight provider “has shown a consistent growth trajectory, with revenues supported by a solid market backdrop and the company’s differentiated global business aviation platform.”
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The report also provided insights into VistaJet’s guaranteed-rate, guaranteed-availability subscription program, ad hoc charter demand, and fleet utilization.
Per Moody’s:
‘The company’s Program membership segment has expanded materially and now accounts for around 60% of flight revenues, providing greater revenue visibility and resilience relative to transactional charter activity. Its customer base of predominantly corporate clients and high net worth individuals has grown consistently while churn rates remain low. The company continues to sell additional flight hours to its existing customer base, indicating further demand for the services, while its on-demand business supplements this demand, driving a better fleetwide utilization. Nevertheless, despite fleet utilization exceeding 1,000 hours per aircraft per year, ferry flights remained high at 30%. Operating profitability has improved, benefiting from better utilization of Vista Global’s optimized fleet, continued focus on core aircraft types, and the company’s ability to largely pass through fuel price volatility to customers. These factors have supported a gradual strengthening of Moody’s adjusted EBITDA margins and more stable cash generation. Moody’s adjusted leverage stood at 5.3x at the end of 2025, which remains high but represents a significant improvement from prior years. We expect further gradual deleveraging over the next 12–18 months, underpinned by mid-single digit revenue growth assumptions, continued high fleet utilization, and disciplined cost control. However, ongoing investments into fleet expansion and renewal are expected to increase gross debt, partially offsetting deleveraging.’
Moody’s also highlighted a put option associated with Class 1 shares that is redeemable this September.
“While Vista Global currently has sufficient liquidity sources to address the obligation, the settlement could reduce financial flexibility if not managed proactively,” per the rating agency.
Moody’s added, “More generally, the B2 CFR reflects Vista Global’s strong competitive position in the global business aviation market, diversified revenue base, high asset utilization, and recurring revenue from Program memberships. These strengths are balanced by exposure to cyclical demand, high absolute leverage, capital intensity associated with fleet investments, and execution risk related to future refinancings.”
The stable outlook “reflects our expectation that Vista Global will maintain steady operating performance, supported by a solid demand environment for business aviation and the continued expansion of its contracted Program revenues.”
Earlier this week, founder Thomas Flohr told CNBC that the company had its best quarter ever for adding subscriptions.
“In 2026’s first quarter, we had the strongest subscription additions in our entire history over the last 22 years,” Flohr told the cable network.
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Moody’s said its outlook “assumes gradual deleveraging (and) adequate liquidity.”
It also warned against “material increase in financial risk appetite, despite planned fleet investments.”
Earlier this month, Vista said it would upgrade all 18 of its Bombardier Global 7500s to the Global 8000 platform by year’s end.
In February, it placed a firm order for 40 Challenger 3500s with options for 120 more.
Liquidity is “adequate and supported by cash on the balance sheet of $228 million.”
There is also “some capacity under the upsized $350 million revolving credit facility maturing in March 2028, including proposed transactions.
Vista Global has “around $229 million of debt and lease amortizations in the next 12 months.”
Moody’s notes the next “major debt maturity being the $500 million notes due in June 2028.”
The equity value of aircraft and the issuance of new equity could provide additional liquidity.
That, however, would be “dependent on market conditions if and when needed.”
Moody’s added:
‘In our Loss Given Default for Speculative-Grade Companies methodology, we rate the VistaJet Malta Finance P.L.C.’s backed senior unsecured bond totaling $2.025 billion, pro forma for the proposed transaction, one notch below with the long-term corporate family rating at B2, given the high share of secured debt in the capital structure. The backed senior secured term loan is rated Ba3, two notches above the CFR, reflecting its security package that should provide higher recovery in a bankruptcy scenario. Vista Global’s CIS-4 score reflects high exposure to governance risk driven by private ownership and potential for debt-funded growth, despite anticipated credit metrics improvement.”
Ratings could be boosted if the company can “deleverage its capital structure, such as Moody’s-adjusted debt/EBITDA is maintained below 4.5x on a sustained basis, generate at least 5% free cash flow/debt, and improve its EBITA margin towards 20% on a sustained basis.”
An upgrade would also “require a clear commitment to and demonstration of adherence to a conservative financial policy while maintaining at least a good liquidity profile.”
Conversely, Moody’s said downward pressure includes if the Vista Global is “unable to maintain debt/EBITDA below 5.5x, maintain EBITA margins in mid-teens in percentage terms, (maintain Moody’s adjusted EBITA/Interest above 1.5x, generate sufficient free cash flow to meet the scheduled amortization of its aircraft financings leading to a deterioration in liquidity, or if it continues to finance its growth with additional debt leading to weaker credit metrics.
In the CNBC interview, Flohr spoke about recent reports of a possible IPO.
Anchor Dan Murphy asked Flohr, “Is that a move to scale, or a defensive necessity to deleverage the balance sheet, which S&P still views with a negative outlook?”
Flohr said, “We always keep all the financial options available to us (and) that includes an IPO (and) it includes other potential strategic investments.”
In addition to its global position, VistaJet ranks third in the U.S., the world’s largest private jet market.
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