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Vista Outdoor’s Strategy, Execution Lead to Debt Rating Upgrade by S&P Global Ratings
Based on “strategic decisions” and segment diversification, the credit rating agency raised our grade to “BB” from “BB-” late last week.
We believe that Vista’s strategic decisions in recent years ... have led to stronger credit metrics than we had previously forecast.

ANOKA, Minn. – Vista Outdoor Inc. (NYSE:VSTO), the parent company of 39 renowned brands that design, manufacture and market sporting and outdoor products to consumers around the globe, received a debt rating upgrade last week from S&P Global Ratings thanks to management-led strategic decisions, including asset divestitures, consolidation of the U.S. ammunition market, acquisitions and product expansion in outdoor products.

The credit rating agency lifted the company’s rating to “BB” from “BB-” after seeing that Vista Outdoor's operating performance through December 2021 was “stronger than we had originally projected.”

“The upgrade reflects our view that leverage will remain near 1x due to Vista’s portfolio changes and strong demand for its products,” the company wrote. "We believe that Vista’s strategic decisions in recent years, including asset divestitures, consolidation of the U.S. ammunition market, acquisitions and product expansion in outdoor products, and debt reduction have led to stronger credit metrics than we had previously forecast." 

Our Value Creation Framework is the roadmap driving Vista Outdoor's financial and operational performance. The focus of this strategy is to deliver long-term, sustainable, profitable growth and continued cash generation, which solidifies our position as the outdoor sports and recreation market leader. 

“Vista’s Outdoor Products segment adds diversification into growing and uncorrelated businesses," the S&P Global review continued. "Vista’s recent acquisitions, including QuietKat, Foresight and Stone Glacier, further diversify the company’s outdoor products segment into fast-growing categories such as e-bikes, golf simulators, and mountain equipment. These products add to the segment’s existing hydration, outdoor cooking, and cycling accessories businesses. Seven of the company’s 10 over $100-million revenue-generating brands sit in this segment.”

For a deeper dive into the company’s ratings, visit S&P Global online (registration required) or check out this article from SGB Media on the rating upgrade.

Vista Outdoor reports Fourth-Quarter and Fiscal-Year 2022 earnings on Thursday, May 5.

About Vista Outdoor Inc.
Vista Outdoor (NYSE: VSTO) is the parent company of more than three dozen renowned brands that design, manufacture and market sporting and outdoor products. We serve a broad and diverse range of consumers around the globe, including outdoor enthusiasts, golfers, cyclists, backyard grillers, campers, hunters, recreational shooters, athletes, as well as law enforcement and military professionals. Our reporting segments, Outdoor Products and Sporting Products, provide these consumers with a wide range of performance-driven, high-quality and innovative outdoor and sporting products. Our operating model leverages shared resources across brands to achieve levels of excellence and performance that would be out of reach for any one brand on its own. Brands include Remington Ammunition, Bushnell, CamelBak, Bushnell Golf, Foresight Sports, Fiber Energy Products, Bell Helmets, Camp Chef, Giro, QuietKat, Stone Glacier, Federal Ammunition and more. Vista Outdoor products are sold at leading retailers and distributors across North America and worldwide. For news and information, visit our website at www.vistaoutdoor.com.

For further information: Eric Smith -- Phone: 901-573-9156; E-mail: media.relations@vistaoutdoor.com