Fitch Affirms Global Switch at 'BBB’, Outlook Stable
November 23, 2012
Fitch Ratings has affirmed Global Switch, the leading European
and Asia Pacific wholesale carrier neutral data centre provider,
investment grade credit rating at 'BBB' and the Outlook for the
company as Stable.
Fitch note that Global Switch has a large portfolio of
high-specification data centres valued at GBP3.6bn at FY11 (to
March 2012) which are geographically diversified across Europe and
Asia-Pacific and that unlike many property companies, Global Switch
is cash generative.
Jean-Pierre Husband, Director, Fitch Ratings said "Global Switch
retains strong credit metrics, with leverage on a loan-to-value
basis at around 13%. We believe that Global Switch's
financial structure could absorb a possible further downturn in
global economic activity."
"Global Switch's tenant profile is good overall. Tenants
invest large amounts of their own capex to fit out their space and
will be reluctant to move sites given their considerable
investment. The data centres should thus show limited price
sensitivity due to the often critical nature of the IT applications
for tenants. Fitch believes that retention rates will therefore
remain relatively high and this will be helped by staggered lease
Click here for a copy of the full Fitch Ratings
Global Switch is a Reuben Brothers company.
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