S&P assigns Bumble positive outlook

S&P said it changed its outlook for Bumble (Buzz Finco LLC) to positive from stable and affirmed all its ratings, including the B issuer credit rating and senior secured issue-level rating. The agency also assigned a B issuer credit rating to Bumble Inc., the ultimate parent company of the borrower and operating subsidiary Buzz Finco. The outlook on Bumble Inc. is also positive.

“The positive outlook reflects our view that the company's S&P Global Ratings-adjusted gross leverage could remain below the upgrade threshold of 5x over the next 12-18 months. Bumble has successfully attracted consumers to their apps, converted free users to paid users, and effectively engaged their users with frequent updates.

“Bumble reported the number of paying users for the Bumble App increased roughly 25% year over year to 2.6 million at the end of the third quarter of 2023 due to strength in monthly active users, payer penetration gains in many key markets including international and a product roadmap including a newly introduced pre-match messaging feature called Compliments,” S&P said in a press release.

The agency noted the company lowered its S&P Global Ratings-adjusted gross leverage to 4.8x for the last 12 months ended Sept. 30 and expects it to decrease to the low-4x range in 2024.

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