Moody’s changes Victory Capital’s outlook to positive on Amundi deal

Published 11/07/2025, 20:34
© Reuters.

Investing.com -- Moody’s Ratings has affirmed Victory Capital Holdings (NASDAQ:VCTR), Inc.’s Ba1 corporate family rating while changing its outlook from stable to positive, citing the company’s solid operating results and expected benefits from its recent Amundi SA (EPA:AMUN) transaction.

The rating agency noted that Victory has maintained strong profitability, expanded its product portfolio through both organic and inorganic investments, and reduced debt, contributing to balance sheet deleveraging.

The positive outlook reflects the expected benefits of Victory’s acquisition of Amundi’s US asset management business, which closed on April 1. Moody’s anticipates improved credit metrics over the next 12-18 months as the new business is integrated into Victory’s operations.

For the twelve months ending March 31, Victory’s debt-to-EBITDA ratio was 2.3x. With cost synergies and estimated earnings from the Amundi US acquisition, financial leverage is expected to decrease to below 2.0x.

The partnership with Amundi is projected to yield approximately $110 million in net cost savings, higher than the $100 million initially projected. Moody’s considers the execution risks of this transaction to be modest, given Victory’s strong track record of successfully integrating new businesses.

Victory’s Ba1 rating reflects its modest financial leverage, strong profitability, and solid cash flow generation, but is constrained by ongoing asset redemptions, earnings sensitivity to financial markets, and concentrated exposure to retail distribution channels.

The rating could be upgraded if Victory achieves meaningful organic growth through net asset inflows, maintains financial leverage below 2.0x debt-to-EBITDA, or significantly improves its geographic diversification.

Conversely, the outlook could return to stable or the rating could be downgraded if Victory experiences net client redemptions exceeding 2% of managed assets, sustains financial leverage above 3.0x debt-to-EBITDA, or sees GAAP pretax income margins fall below 25%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.