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S&P, Moody's assign ratings to VICI Properties

S&P Global Ratings assigned VICI Properties Inc. its BB- corporate credit rating. The ratings outlook is stable.

The rating agency also assigned its BB+ issue-level rating to VICI's proposed $2.75 billion senior secured credit facility, while also assigning its B issue-level rating to the company's existing $767 million second-lien notes due in 2023.

According to a note, the BB- corporate credit rating on VICI mirrors the stability and predictability of its cash flows given that they contain mainly fixed rents, which S&P believes can support higher leverage up to 7x at the present rating.

The stable outlook reflects the rating agency's expectation for minimal cash flow instability given the triple-net lease structure under which approximately all of its cash flows are fixed, which should enable VICI to reduce leverage under 7x in 2018, absent further purchases.

Meanwhile, Moody's assigned first-time ratings to VICI Properties Inc., corporate family rating at Ba3, and its indirect wholly owned subsidiary, VICI Properties 1 LLC, first lien term facilities at Ba3 and second-priority senior secured notes at B1. The ratings outlook is stable.

According to a note, the Ba3 corporate family rating reflects the real estate investment trust's high quality and geographically diverse asset portfolio, while also reflecting the REIT's robust cash flow and improving leverage metrics.

The stable ratings outlook mirrors Moody's anticipation that VICI will maintain its proposed capital structure and lease terms as it strives for growth, while also reflecting the rating agency's anticipation that the company will decrease its net debt/EBITDA to less than 6.0x in the short-term.