Moody's upgrades Getty Images

Moody's Investors Service said it upgraded Getty Images, Inc.'s corporate family rating to B2 from B3 probability of default rating to B2-PD from B3-PD, senior secured credit facilities' ratings to B1 from B2, comprising the $80 million revolving credit facility, the $995.2 million outstanding first-lien term loan and the €419 million outstanding first-lien euro term loan, and senior unsecured notes rating to Caa1 from Caa2 with $300 million outstanding. The agency revised the outlook to positive from stable.

“The ratings upgrade reflects Moody's expectation for continued de-leveraging following Getty's solid improvement in operating performance, debt protection measures and liquidity as business conditions experienced strong recovery from the pandemic-induced recession. The improvement was driven by increased customer demand in the creative segment and strong volumes in editorial as live entertainment and sporting events resumed their normal cadence owing to the pandemic's abatement and reopening of economies,” the agency said in a press release.

The improved outlook reflects the expectation that Getty will deleverage further over the near-term via the paydown of debt with cash equity proceeds from the company's recent combination with CC Neuberger Principal Holdings II, a publicly-owned special purpose acquisition company, which closed last week.

Pro forma for the expected debt repayment, Moody’s said it estimates Getty's total debt to EBITDA will decrease to the 4.8x-5x area from 5.6x for the last 12 months ended March 31.

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