Global Switch secures credit rating upgrade to BBB+ by Fitch
November 14, 2014
Global Switch, the leading owner and operator of large scale,
carrier neutral data centres in Europe and Asia Pacific, today
announced that its credit rating has been upgraded by Fitch to BBB+
from BBB with a stable outlook. The short-term credit rating
has also been upgraded to F2 from F3.
This further upgrade to Global Switch's already strong
investment grade credit rating is testament to the strength of the
Company's established business model and solid financial track
record. Fitch highlights the Company's prime portfolio of large
scale data centres and conservative capital structure.
The rating agency notes the increased diversification of
borrowings and the extension of the company's debt maturity profile
following successful GBP £350 million and AUD $100 million
unsecured bond issues in the last 12 months.
The upgrade also recognises Global Switch's resilient cash flows
supported by its geographically diversified portfolio of assets
that benefit from robust, recurring revenue streams generated from
long term leases. The strategic positioning of its assets in
central, city locations in key telecommunications hubs is noted by
Fitch to offer reliable power supplies, high levels of security and
a strong operating track record.
Fitch notes that Global Switch is one of the world's leading
players with market dominance in a sector with high barriers to
entry, driven by positive macro dynamics including the growing
volume of global internet traffic, demand for cloud computing,
increased bandwidth requirements and an ongoing trend towards
Having recently launched a new data centre in Sydney, Global
Switch now owns and operates a portfolio of ten high quality, high
specification, carrier neutral data centres. These assets are
multi-tenanted and continue to generate stable rental income growth
due to high occupancy levels and low levels of customer churn.
Fitch also references the opportunity for Global Switch to
further increase its global footprint in growth cities over the
short to medium term. Global Switch has a strong development
pipeline which includes near term plans for new sites in Hong Kong
and Singapore and the further expansion of its new Sydney East data
centre. Thereafter, the Company also has medium term plans to
expand its existing sites in Europe. Global Switch maintains a low
risk strategy of increasing capacity at existing locations in line
with market demand.
John Corcoran, Executive Chairman and CEO, Global Switch, said:
"The credit rating upgrade from Fitch recognises the continued
resilience of Global Switch and its growing and predictable
earnings profile. It is testament to the strength of our balance
sheet and diversified portfolio of assets and further enhances our
competitive advantage. This will enable us to access the deepest
and most consistently available pools of liquidity to increase our
financial flexibility and to further reduce our cost of
Additional information regarding Global Switch's rating
assignment can be found in Fitch Ratings' press release accessible
from their website at: www.fitchratings.com.
Global Switch also has investment grade credit ratings assigned to
it by Moody's and Standard & Poor's.
For further information about Global Switch, please visit the
+44 (0)20 7802 5154
Jenny Davey / Anjali Unnikrishnan
+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 300,000 square metres (3,200,000 square
feet) across ten data centres in seven cities 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 launched the first
stage of a planned expansion of its Amsterdam data centre and the
first stage of Sydney East, its second data centre in Sydney,
earlier this year.
The next investments in the expansion programme are planned to
be new data centres in Hong Kong and Singapore, where Global Switch
is planning a second facility, together with further stages of the
newly opened Sydney East data centre. Thereafter, the Company also
has medium term plans to expand its existing sites in Europe.
Global Switch maintains a low risk strategy of increasing capacity
at existing locations in line with market demand.
At financial year-end 31 March 2014, Global Switch reported
total revenues of £358.4 million and total assets of £4.4 billion.
Since 2007 the company has been wholly owned by Aldersgate
Investments Limited, a Reuben Brothers company (see www.reubenbrothers.com),
which first acquired an interest in the company in 2004.
Disclaimer The statements contained herein may include
statements of future expectations and other forward-looking
statements that are based on management's current views and
assumptions and involve known and unknown risks and uncertainties
that could cause actual results, performance or events to differ
materially from those expressed or implied in such statements. In
addition to statements which are forward-looking by reason of
context, these forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar statements.
This announcement is for information purposes only and does not
constitute an offer to sell or an invitation to subscribe for or a
solicitation of an offer to buy or subscribe for any
Note * A Tier III data centre is an industry standard
classification for a data centre composed of redundant power and
cooling distribution paths, providing a minimum of 99.982%
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