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S&P rates Twitter, notes BB+
S&P said it assigned BB+ ratings to Twitter Inc. and its proposed $600 million of senior unsecured notes. The agency also assigned a 3 recovery rating to the notes.
Proceeds will be used for general corporate purposes.
“Our rating on Twitter reflects its unique position in real-time social networking, meaningful global scale, excellent brand recognition, engaged user base and healthy adjusted EBITDA margins in the mid- to high-30% area. Twitter’s $5.8 billion cash balance and modest debt balances provide ample financial flexibility,” said S&P in a press release.
The outlook is stable. “The stable rating outlook reflects our expectation that Twitter will maintain solid operating performance over the next two years, with 10%-12% revenue growth. We also expect the company to prudently invest in platform improvements such as platform health, and make talent- and capability-focused acquisitions, maintaining leverage under 1.5x over the next 12 months,” S&P said.
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