Global Switch secures credit rating boost
November 14, 2013
Global Switch, the leading owner and operator of large scale,
multi-tenanted, carrier-neutral data centres in Europe and
Asia-Pacific, has today been assigned an investment grade credit
rating by Standard & Poor's (S&P).
The BBB rating with stable outlook from S&P is testimony to
the strength and resilience of the business, with S&P noting
the stable and predictable earnings profile and high quality of the
Company's assets in the prime data centre markets in Europe and
Asia Pacific. This S&P rating is also consistent with the BBB
rating with a stable outlook currently assigned to the Company by
Today has also seen the publication of an updated Credit Opinion
from Moody's, who continue to rate the Company Baa3 with stable
outlook. The ratings agency has in this publication revised its
guidance, providing flexibility for Global Switch to extend its
borrowings without affecting its existing credit rating, reflecting
the growing strength of the business and its solid operating
performance over the last three years. Moody's noted Global
Switch's strong recurring income stream generated from long term
leases, high occupancy levels, low levels of customer churn,
conservative gearing, excellent track record of customer service
reliability, the high barriers to entry in the sector and the
strong positive global market dynamics for data centres.
Global Switch's investment grade credit ratings remain a key
competitive advantage, allowing access to the deepest and most
consistently available pool of liquidity. Today's
announcement from S&P and Moody's updated credit opinion are a
welcome recognition of the Company's strong balance sheet, record
of growth, exceptional assets and high quality income and will
further bolster its financial flexibility.
In this regard the Company is contemplating an exceptional
dividend of up to £600m to its parent company, subject to further
borrowings and conditions in the debt capital markets.
For more information about Global Switch, please visit
+44 (0)20 7802 5154
+44 (0)20 7251 3801
About Global Switch
Founded in 1998, Global Switch Holdings Ltd (Global Switch) owns
and operates large scale Tier III* data centres that are carrier
neutral and multi-tenanted. The Company's focus is on highly
resilient, central, low latency, network dense locations in prime
city centre locations and internet hubs close to its customers on
the edge of financial and business districts.
Global Switch operates 290,000 square metres (3,100,000 square
feet) of data centres across seven locations in Europe and Asia
The data centre industry is benefitting from attractive market
dynamics, characterised by growth in internet usage, combined with
the expansion of cloud computing, outsourcing and regulation which
have led to significant growth in demand from financial
institutions, corporations and governments.
Global Switch is part way through a significant global expansion
plan which started with an extension of its Singapore data centre
in 2010 and the building of a second data centre on its Paris
campus in 2012. Having secured pre-commitments from a number of
large multi-national companies, Global Switch is nearing completion
of the construction of an expansion to its Amsterdam data centre
and is also constructing the first stage of Sydney East, its second
data centre in Sydney.
The next investments in the expansion programme will be new data
centres in Hong Kong and Singapore, where Global Switch is planning
a second facility.
At financial year-end 31 March 2013, Global Switch reported
total revenues of £340 million and total assets of £4.38
billion. Since 2007 the company has been wholly owned by
Aldersgate Investments Limited, which first acquired an interest in
the company in 2004.
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