S&P ups Salesforce.com, rates notes A+

S&P said it raised Salesforce.com Inc.’s ratings, including its issuer rating to A+ from A and assigned an A+ rating to its new senior unsecured notes.

“The upgrade reflects Salesforce.com's growing scale as it continues to outgrow the overall software market. Salesforce.com grew its revenues 23% year over year to $22.4 billion for the latest-12-months ended April 30, 2021, despite the Covid-19 pandemic and has roughly doubled its revenues over the past three years, primarily through organic growth,” S&P said in a press release.

The agency said it forecasts Salesforce.com to boost revenues near 23% year-over-year in fiscal 2022 to around $26 billion.

The company plans to acquire Slack Technologies with a mix of new debt and cash totaling about $15.7 billion. “We forecast the transaction will raise Salesforce.com's adjusted leverage from zero to about 1.2x upon close, well below our downgrade trigger of 2x,” S&P said.

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