S&P and Fitch Upgrade Equinix to BBB on Strength of Interconnection and Improved Credit Quality

Rhea-AI Summary

Equinix, Inc. (Nasdaq: EQIX) has announced upgrades to its credit ratings by both S&P and Fitch, moving from BBB- to BBB. The S&P upgrade took effect on April 28, 2021, while Fitch's upgrade was effective April 30, 2021. These upgrades highlight Equinix's expanding asset portfolio and global scale, supported by a strong interconnection platform and resilient financial policies. The company has maintained stable recurring revenue despite the challenges posed by the COVID-19 pandemic. CFO Keith Taylor emphasized the operational flexibility gained from these ratings improvements.

Positive

• Upgraded credit ratings from S&P and Fitch to BBB from BBB-.
• Reflects a growing portfolio of owned assets and increasing global scale.
• Stable recurring revenue providing resilience through COVID-19.
• Improved leverage and liquidity position noted by management.

Negative

• None.

REDWOOD CITY, Calif., May 5, 2021 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the world's digital infrastructure company™, today announced that both Standard & Poor's ("S&P") and Fitch Ratings ("Fitch") have upgraded all of Equinix's credit ratings to BBB, from the previous rating of BBB-. The ratings outlook for both agencies is Stable. The upgraded S&P ratings are effective as of April 28, 2021, and the upgraded Fitch ratings are effective as of April 30, 2021. S&P previously upgraded Equinix's rating to BBB- in February 2019, marking our entrance as an investment-grade company. Fitch previously upgraded Equinix's ratings to BBB- in July 2019, and subsequently revised its rating outlook to "Positive" in June 2020.

The ratings upgrades from both agencies reflect Equinix's growing portfolio of owned assets, increasing global scale supported by its unique interconnection platform, a disciplined financial policy utilizing broad access to capital, and resilience through the COVID-19 pandemic. Equinix's highly stable recurring revenue and favorable industry tailwinds continue to provide additional positive ratings factors.

"We are extremely pleased to receive these upgrades to our investment-grade ratings along with increased operating flexibility in leverage tolerance," said Keith Taylor, Chief Financial Officer, Equinix. "This is another clear recognition of our efforts to continue to improve our leverage and liquidity position while continuing to invest in meaningful growth opportunities across the business."

About Equinix
Equinix (Nasdaq: EQIX) is the world's digital infrastructure company, enabling digital leaders to harness a trusted platform to bring together and interconnect the foundational infrastructure that powers their success. Equinix enables today's businesses to access all the right places, partners and possibilities they need to accelerate advantage. With Equinix, they can scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value.

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, the challenges of acquiring, operating and constructing IBX data centers and developing, deploying and delivering Equinix products and solutions, unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenues from customers in recently built out or acquired data centers; a failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; risks related to our taxation as a REIT; and other risks described from time to time in Equinix filings with the Securities and Exchange Commission. In particular, see recent Equinix quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.

 

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SOURCE Equinix, Inc.

FAQ

What led to the credit rating upgrade for EQIX?

The upgrade was due to Equinix's growing portfolio of assets, increasing global scale, and stable recurring revenue.

When did S&P and Fitch upgrade EQIX's ratings?

S&P's upgrade took effect on April 28, 2021, and Fitch's upgrade was effective April 30, 2021.

What is the current credit rating of EQIX?

Equinix's current credit rating is BBB as upgraded by S&P and Fitch.

How has EQIX performed during the COVID-19 pandemic?

Equinix demonstrated resilience through stable recurring revenue and strong financial policies during the pandemic.

Who commented on the credit rating upgrades at EQIX?

Keith Taylor, the Chief Financial Officer, expressed satisfaction regarding the upgrades.