Go Daddy Operating Co. LLC Assigned 'B' Credit Rating, Outlook Stable; $825 Million Senior Credit Facilities Rated 'B' Jan 12
- Language: English
- Published: January 2012
The rating and outlook on Scottsdale, Ariz.-based Go Daddy Operating Co. LLC reflect Standard & Poor's Ratings Services' expectation that Go Daddy will remain highly leveraged (above 10x) for the next several years, generate positive discretionary cash flow, and reduce debt, absent a leveraging transaction. We expect debt leverage to decline, consistent with our expectation of EBITDA growth, and that Go Daddy will use positive discretionary cash flow in part to repay debt. We assess Go Daddy's business risk profile as "weak" because its EBITDA margin is lower than its peers' and because of keen competition in the Web services market for small and midsize business spending. We view the financial risk profile as "highly leveraged" based on Go Daddy's...
Companies mentioned in this report are:
- Go Daddy Operating Co. LLC
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