Moody’s gives B3 to Getty revolver

Moody's Investors Service said it assigned a B3 rating to Getty Images, Inc.'s new $54.56 million revolving credit facility and withdrew the B3 rating on the old $150 million revolver.

The company's Caa1 corporate family rating and stable outlook are unchanged.

Getty amended its existing credit agreement to reduce the size of the revolver and extend its maturity to July 2019 from October 2017.

“Getty's Caa1 CFR reflects Moody's view that the company will continue to operate with excessive leverage exceeding 10.0x total debt to EBITDA (includes Moody's standard adjustments) and generate neutral to modestly positive free cash flow over the rating horizon due to investments in growth and strategic initiatives, a mix shift to Royalty-Free products (from Rights-Managed products) at higher gross margins (or lower royalty rates) and increasing exposure to content with modestly higher royalty rates associated with certain third-party licensing agreements,” the agency said in a news release.

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