New York, September 09, 2015 -- Moody's Investors Service has affirmed the Ba3 corporate family rating (CFR) for Equinix Inc. ("Equinix") following the announcement that it plans to acquire Japanese data center provider Bit-isle Inc. ("Bit-isle") for an enterprise value of JPY 52.4 billion ($426 million). Due to the company's persistent annual cash flow deficit resulting from its high dividend payout, Moody's has lowered Equinix's speculative grade liquidity rating to SGL-3 from SGL-2. Moody's anticipates that the company will rely heavily upon its revolving credit facility to finance its annual cash flow deficit, resulting in adequate liquidity for the next 12-18 months. As part of this rating action, Moody's has also affirmed the company's Ba3-PD probability of default rating (PDR) and the B1 rating on the company's senior unsecured notes. Moody's expects Equinix to finance the all-cash transaction primarily with debt, which will further stress Equinix's credit metrics. The offer for Bit-isle comes in the wake of Equinix's$4.2 billion acquisition (50% debt financed) of UK provider Telecity from May of this year. The still-pending Telecity deal and this additional debt financed transaction will eliminate any flexibility within the current rating, but the relatively small size of the Bit-isle acquisition will not materially change the company's credit profile. The outlook remains stable.

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