Global Switch becomes the highest credit rated data centre company following Moody’s upgrade

Following this upgrade and the recent upgrade by Fitch Ratings of Global Switch’s rating to BBB+ from BBB, Global Switch becomes the highest credit rated data centre company in the world. Only one other major provider has achieved an investment grade rating.

The further upgrade to Global Switch’s already strong investment grade rating is testament to the Company’s consistent track record of delivery and its high quality portfolio of multi-tenant, carrier-neutral data centres in seven global financial and business centres. In upgrading Global Switch to Baa2 from Baa3, Moody’s recognises the Company’s commitment to its highly focused investment strategy as well as its conservative approach to leverage and development. Moody’s also observes Global Switch’s consistent track record and continued expectation of strong demand for its services, supported by assets in irreplaceable locations, with high occupancy and long term leases.

Moody’s upgrade follows soon after the announcement that the assessment of Global Switch’s liquidity has been revised to "strong" from "adequate" by Standard and Poor’s. The credit rating was affirmed by Standard and Poor’s at BBB with a stable outlook. The short-term credit rating was also affirmed at A-2.

John Corcoran, Executive Chairman and CEO, Global Switch, said: “Following a series of credit ratings upgrades, Global Switch now has the highest credit rating for a data centre company in the world. The ratings upgrades recognise 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 reduce our cost of capital further.”

All three of the major rating agencies have now completed their annual review of Global Switch’s business, including thoroughly assessing its financial, commercial, leadership and operational characteristics, with the upgrades resulting in the strongest investment grade credit ratings in the sector globally.

All data centre customers pay close attention to the credit rating of their data centre provider because it offers guidance on the business and financial strength of the company, the average duration of its debt and its ability to expand its facilities with either its own resources or by raising new finance.