Moody’s re-affirms Global Switch’s Baa2 rating with a stable outlook
Global Switch, the leading owner, operator and developer of large scale, multi tenanted carrier and cloud neutral data centres in Europe and Asia-Pacific, has had its Baa2 long-term issuer credit rating re-affirmed by Moody's. The rating outlook remains stable. This rating maintains Global Switch’s position as the highest credit rated data centre company in the world. Only one other major data centre provider has achieved an investment grade credit rating.
The credit opinion issued by Moody’s follows the successful introduction, on 21 December 2016, of a new strategic investor, representing a consortium of Chinese corporate and institutional investors, to support the Company’s expansion, including two major customer pre-commitments for data centre services in Hong Kong and Singapore.
Moody’s credit opinion identifies positive credit drivers including Global Switch’s strong market position in a favourable market environment; predictable cash flows from long-term leases and high tenant retention ratios; strong financial metrics with low leverage and solid fixed charge coverage; a development programme that will improve diversification; and the introduction of a strategic investor that will support further growth and expansion. Moody’s also noted Global Switch’s robust liquidity profile, enhanced by the recent signing of a new £425 million revolving credit facility, and the ample headroom under the company’s various financial covenants.
John Corcoran, Chief Executive Officer of Global Switch said: “Moody’s credit rating is a testament to Global Switch’s consistent track record of delivery and its high quality portfolio of multi-tenanted, carrier and cloud neutral data centres. Moody’s recognises the strength of our business model, our growing and predictable earnings profile and conservative development strategy. We welcome this confirmation of our ongoing leadership position as the highest credit rated data centre company in the world.”
Global Switch also has investment grade credit ratings from Fitch Rating’s (BBB+) and Standard & Poor’s (BBB).
Additional information regarding Global Switch's ratings can be found in press releases accessible from the credit rating agency websites at: www.fitchratings.com, www.moodys.com and www.standardandpoors.com.