Moody's assigns Interxion B1, notes B2

Moody's Investors Service said it assigned a B1 corporate family rating and probability of default rating to Interxion Holding NV.

Concurrently, Moody's said it assigned a provisional B2 rating to the senior secured €200 million of notes due 2017.

The outlook is stable.

"The B1 corporate family rating assigned to Interxion reflects: (i) its leading position as a provider of European co-location data centre services and moderate barriers to entry for new entrants; (ii) the favorable medium-term demand/supply dynamics expected at least over the next three years; (iii) the stability of its profitability and cash flows given the limited churn characterizing the industry in general and the company in particular," explains Stefano del Zompo, lead analyst for Interxion at Moody's.

"Other factors that have impacted the rating assigned include: (i) the limited size and scope of the company's operations; (ii) the moderate risk of oversupply as existing players increase their capacity to take advantage of the favorable demand trends and new entrants could increasingly be attracted by the high margins in the segment; (iii) the risks related to the returns on the company's development plans," adds Mr. del Zompo.

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