S&P revises Gogo outlook to positive

S&P said it revised its outlook for Gogo Inc. to positive from stable and affirmed its ratings, including the B+ ratings on its $100 million revolver and $725 million term loan.

“Gogo Inc.'s performance has improved significantly over the past year, with a surge in equipment sales coupled with robust service revenue growth that drove strong earnings growth, resulting in S&P Global Ratings-adjusted debt to EBITDA falling to 4.2x at the end of the first quarter 2023 from 5.2x a year earlier,” the agency said in a press release.

The improved outlook reflects the potential for the company to push its leverage below the 4x upgrade threshold within the next 12 months and stay there, S&P said.

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