S&P raises ServiceNow

S&P said it raised its ratings on ServiceNow Inc. and its senior unsecured notes to A- from BBB+.

“Strong ongoing performance at ServiceNow, improving EBITDA margins, high renewal rates (about 98%), and a significant net cash position drive the rating action. The ratings also reflect ServiceNow's leading positions in information technology (IT) asset management, IT service management, IT operations management and related IT workflows. The company's organic growth (37% CAGR in the past five years) is significantly above market averages,” S&P said in a press release.

The agency noted ServiceNow is aiming for $10 billion in revenues by 2024 and about $15 billion over five years.

The outlook is stable.

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