Fitch Ratings on March 5 published Virgin Money Holdings (UK) Plc's long- and short-term issuer default ratings at BBB+/F2, viability rating at "bbb+," support rating at 5 and its support rating floor at No Floor.
The rating agency said the company's ratings reflect its role as the holding company of the Virgin Money group and are equalized with those of wholly owned unit Virgin Money Plc. The holding company's ratings are driven by the same considerations that affect Virgin Money Plc's ratings, Fitch said.
The equalization of the ratings mainly reflects lowered restrictions for Virgin Money Plc to upstream dividends to its parent company, as well as guidance from the management that dividends will be upstreamed from 2018, Fitch said. It also reflects the lack of external senior debt at the holding-company level, with almost all liabilities being intercompany, the agency said.
The long-term issuer default rating carries a stable outlook.
