Fitch Affirms Global Switch at 'BBB’, Outlook Stable
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 maturities."
Click here for a copy of the full Fitch Ratings release.
Global Switch is a Reuben Brothers company.