Global Switch secures credit rating boost

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 Fitch.

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.