Moody’s Upgrades Cyxtera to B3, Concludes Review with Stable Outlook
September 23, 2021
Miami, FL – September 23, 2021 – Cyxtera (NASDAQ: CYXT), a global leader in data center colocation and interconnection services, today announced that Moody’s Investors Service (Moody’s) upgraded the credit rating of Cyxtera DC Holdings, Inc. to B3 and changed its outlook to stable. The upgrade is effective as of September 20, 2021.
Moody’s upgraded rating and stable outlook are based on an expectation of solid growth in revenue and EBITDA, steady and sustained improvement in the company’s bookings and churn trends, and a strengthened balance sheet following Cyxtera's merger with Starboard Value Acquisition Corp. (SVAC). The stable outlook also reflects Moody's expectation that Cyxtera will steadily drive debt leverage lower and prudently fund organic expansion and inorganic growth.
“This positive ratings action by Moody’s, combined with the upgraded rating of Cyxtera DC Holdings and the assignment of a B- credit rating of Cyxtera Technologies by Standard & Poor’s, underscores the strong results our team has consistently generated over the last several quarters and the positive indicators for the business moving forward,” said Carlos Sagasta, Cyxtera’s Chief Financial Officer. “The stable outlook also reflects that our enhanced liquidity position following the SVAC merger, which provides us with the resources to effectively grow the business to meet customer demand while also creating long-term value for our key stakeholders.”
Cyxtera is a global leader in data center colocation and interconnection services. The company operates a footprint of 61 data centers in 28 markets around the world, providing services to more than 2,300 leading enterprises and U.S. federal government agencies. Cyxtera brings proven operational excellence, global scale, flexibility, and customer-focused innovation together to provide a comprehensive portfolio of data center and interconnection services. For more information, please visit www.cyxtera.com.
Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, Cyxtera’s dependence upon the demand for data centers; Cyxtera’s products and services having a long sales cycle; Cyxtera’s fluctuating operating results; Cyxtera’s ability to compete successfully against current and future competitors; Cyxtera’s ability to continue to develop, acquire, market and provide new offerings or enhancements to existing offerings that meet customer requirements and differentiate it from its competitors; Cyxtera’s ability to manage its growth; the effects of the COVID-19 pandemic on Cyxtera’s business or future results; the impact of Cyxtera’s substantial debt on its future cash flows and its ability to raise additional capital in the future; and the ability of Cyxtera to access external sources of capital on favorable terms or at all. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in Cyxtera’s filings with the Securities and Exchange Commission. There may be additional risks that Cyxtera does not presently know or that it currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Cyxtera’s expectations, plans or forecasts of future events and views as of the date of this press release. Accordingly, you should not place undue reliance upon any such forward-looking statements in this press release. Cyxtera does not assume any obligation to update the forward-looking information contained in this press release, except as required by law.
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