Moody's boosts Gogo

Moody's Investors Service said it upgraded Gogo Inc.'s corporate family rating to B1 from B2 and probability of default rating to B1-PD from B2-PD. Moody's also raised the rating on Gogo Intermediate Holdings LLC's senior secured facilities to B1 from B2. The speculative grade liquidity rating was upgraded to SGL-1 from SGL-2.

“Today's upgrade reflects Gogo's faster-than-expected improvement in financial metrics, in particular debt to EBITDA (Moody's adjusted) which Moody's now expects to be around 4.3x by year end 2023 and decline below 4x in 2024. The improvement in financial metrics is a result of both revenue and EBITDA growth and improved governance factors, including a revised publicly stated leverage guidance (on a net debt basis, company adjusted) to be between 2.5x and 3.5x,” the agency said in a statement.

Moody’s also noted Gogo reported it will pay down $100 million on its term loan during the second quarter.

The outlook remains stable.

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