Fitch Ratings on Sept. 18 revised its rating outlook on Vistra Energy Corp. to positive from stable, citing the company's strategy to improve its financial risk profile.
Recently, Vistra announced several retail acquisitions which Fitch views as credit positive. "With retail acquisitions consuming a large part of [Vistra's free cash flow] in 2019, Fitch expects management to prioritize debt reduction in 2020-2021 to achieve this goal," the rating agency said in a report.
On Aug. 20, Vistra agreed to acquire Dallas-headquartered retail energy business Ambit Energy Holdings LLC for $475 million plus net working capital. Upon closing, the transaction will boost Vistra's share of the ERCOT market from 25% to about 32% and its share in all U.S. competitive markets to 26%.
On July 15, Vistra closed its purchase Crius Energy Trust for about $378 million plus the assumption of $108 million in net debt. The deal will help Vistra expand from five states to 19 states and Washington, D.C.
