Moody’s assigns ServiceNow Baa1

Moody’s Investors Service said it assigned a first-time Baa1 issuer rating to ServiceNow, Inc.

“The Baa1 senior unsecured issuer rating reflects ServiceNow’s track record of solid organic growth driven by product innovation and its position as the market leader in the IT service management (ITSM) segment of the enterprise software market. Moody’s expects subscription revenue growth in the low to mid 20% range over the next two to three years driven by the company’s high customer renewal rates and a growing penetration of a broader portfolio of IT, customer and employee workflow automation software products that address a large market,” the agency said in a press release.

The outlook is stable, mirroring the agency’s forecast the company will “maintain strong liquidity and a modestly leveraged capital structure.”

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