Cyxtera, a global leader in data center colocation and interconnection services, announced that Moody’s Investors Service (Moody’s) upgraded the credit rating of Cyxtera DC Holdings, Inc. to B3 and changed its outlook to stable. The upgrade is effective as of September 20, 2021.
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“The stable outlook also reflects our enhanced liquidity position following the SVAC merger, which provides us with the resources to effectively grow the business to meet customer demand while also creating long-term value for our key stakeholders.”
Moody’s upgraded rating and stable outlook are based on an expectation of solid growth in revenue and EBITDA, steady and sustained improvement in the company’s bookings and churn trends, and a strengthened balance sheet following Cyxtera’s merger with Starboard Value Acquisition Corp. (SVAC). The stable outlook also reflects Moody’s expectation that Cyxtera will steadily drive debt leverage lower and prudently fund organic expansion and inorganic growth.
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“This positive ratings action by Moody’s, combined with the upgraded rating of Cyxtera DC Holdings and the assignment of a B- credit rating of Cyxtera Technologies by Standard & Poor’s, underscores the strong results our team has consistently generated over the last several quarters and the positive indicators for the business moving forward,” said Carlos Sagasta, Cyxtera’s Chief Financial Officer. “The stable outlook also reflects our enhanced liquidity position following the SVAC merger, which provides us with the resources to effectively grow the business to meet customer demand while also creating long-term value for our key stakeholders.”
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