Vistra Corp. (NYSE: VST) upgraded its long‑term issuer default rating to investment grade (BBB‑) by Fitch Ratings on March 17 2026, following a prior upgrade to the same level by S&P Global Ratings on December 2 2025. The Fitch upgrade brings Vistra’s rating in line with the S&P rating and replaces the company’s previous non‑investment‑grade rating of BB+.
The S&P upgrade, announced on December 2 2025, moved Vistra from BB+ to BBB‑, marking the first time the company has achieved investment‑grade status from both major rating agencies. The dual upgrades signal a consensus view that Vistra’s credit profile has improved sufficiently to meet the criteria for investment‑grade ratings.
Both agencies cited a stronger business profile, robust credit metrics, disciplined capital allocation, and improving market fundamentals. S&P projected Vistra’s debt‑to‑EBITDA ratio to be in the mid‑3.0x range by the end of 2025, falling to 2.6x‑2.8x by 2026‑2027, while Moody’s expected the firm’s FFO‑to‑debt ratio to rise to 25‑30% starting in 2026. These metrics demonstrate a clear trajectory toward the leverage and liquidity thresholds required for investment‑grade status.
Vistra’s credit improvement is underpinned by recent business developments. The company secured long‑term generation power purchase agreements with Amazon and Meta, providing stable, long‑term revenue streams. In addition, Vistra completed the acquisition of natural gas assets from Lotus Infrastructure Partners and secured a PPA for the Comanche Peak Nuclear Power Plant, expanding its generation portfolio. Full‑year 2025 results, released on February 26 2026, showed a decline in net income compared with 2024 but an increase in adjusted EBITDA, reflecting the impact of commodity hedging and the growth of its operating assets.
Jim Burke, Vistra’s President and CEO, said, “Fitch’s recent upgrade, together with S&P’s action in December, reflects the consistent execution of our strategy and our continued focus on balance sheet strength. We believe achieving investment‑grade ratings positions the company well to maintain financial flexibility and support long‑term value creation.”
The dual investment‑grade ratings are expected to lower Vistra’s borrowing costs and broaden its access to capital markets, providing the company with greater financial flexibility to fund future growth initiatives and shareholder returns while maintaining a strong balance sheet. The upgrades also reinforce investor confidence in Vistra’s ability to navigate the evolving energy market, particularly the growing demand for power from data centers and the favorable pricing environment in Texas and the PJM region.
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