VIA Outlets’ Credit Rating Affirmed by Fitch

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2 November, 2022 – VIA Outlets – the leading owner-operator that is redefining the outlet shopping experience with a portfolio of eleven premium outlet centres in nine European countries – has had its Long-Term Issuer Default Rating (IDR) and senior unsecured rating of BBB+ with a stable outlook affirmed by ratings agency Fitch Ratings.

The ratings affirmation reflects VIA Outlets' post-pandemic performance, with recovery of brand sales reaching pre-pandemic levels in the first six months of 2022. VIA Outlets has achieved this through active management in the remodelling, remerchandising and remarketing (the ‘Three Rs’) of its outlet centres and projects continued growth and improvement in all key performance indicators in 2023.

VIA Outlets' 2021 occupancy cost ratio (OCR), excluding periods impacted by pandemic-related closures, was around 10% (12% with turnover rent). This points to its retailers having a higher profit margin, which combined with less-intense personnel costs and higher sales density in outlet stores underlines its sustainable rental levels.

The credit rating is supported by continued brand appetite for stores and the strengthening of long-term brand relationships. VIA Outlets' centre expansion plans - including the expansion of Sevilla Fashion Outlet, which is under construction for completion in Q4 2023, as well as its continued focus on digitalisation — provide further growth potential.

Fitch reports that the company's balance sheet debt is fully-fixed rate and comprises mostly unsecured bonds, with no near-term debt maturities. VIA Outlets maintains a moderate LTV (loan-to-value) and has sufficient funds available for capex and expansion plans, ensuring the company is well positioned to deliver on its growth objectives.

For further details please refer to the corresponding press release on the Fitch Ratings website here.

Fitch Ratings is a leading provider of credit ratings, commentary and research for global capital markets. For over 100 years, Fitch Ratings has been building and creating value for the global markets around the world. Their rigorous analysis and deep expertise have resulted in a variety of market leading tools, methodologies, indices, research and analytical products, which have helped investors manage risk and fund over a century of growth.