Moody's boosts Getty Images

Moody's Investors Service said it upgraded Getty Images, Inc.'s senior secured first-lien debt obligations to Ba3 from B1, comprising a $150 million revolving credit facility, a $639.6 million outstanding term loan B and a €419 million outstanding euro term loan B, and $300 million of senior unsecured notes to B3 from Caa1

The agency also raised the corporate family rating to B1 from B2 and the probability of default rating to B1-PD from B2-PD. Concurrently, Moody’s assigned an SGL-1 speculative grade liquidity and changed the outlook to stable from positive.

“The ratings upgrade reflects Moody's expectation for continued deleveraging following Getty's 2022 de-SPAC transaction driven by an expected return to top-line growth in 2024 and improvement in operating performance, debt protection measures and liquidity. Though macroeconomic headwinds and muted advertising spend slowed the pace of deleveraging this year, Moody's projects decreasing leverage and solid free cash flow (FCF) generation over the rating horizon,” the agency said in a press release.

The outlook reflects the expectation that Getty will slowly reduce its leverage “to the 4.7x area (Moody's adjusted) once revenue and EBITDA resume growth following the recent period of sluggish demand for the company's visual, digital and video content,” Moody’s said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.