Moody’s upgrades Cyan Blue

Moody's Investors Service said it upgraded the corporate family rating of Cyan Blue Holdco 2 Ltd. (Sky Bet) to B1 from B2, along with its probability of default rating to B1-PD from B2-PD.

The upgrades are a result of the company’s stronger-than-expected operating performance, rapid deleveraging, very good liquidity and expectations that it can continue growing revenue and EBITDA over the next 12 to 18 months, Moody’s said.

The agency also said it upgraded the ratings on the £340 million term loan B due 2022 issued by subsidiary Cyan Blue Holdco 3 Ltd. to B1 from B2, along with the rating on the proposed £35 million revolving credit facility due 2021 to be borrowed by Cyan Blue Holdco 3 and Cyan Bidco Ltd., an indirect subsidiary, to B1 from B2.

The outlook is stable.

The upgrades follow the stronger-than-anticipated operating performance of Sky Bet, which resulted in rapid de-leveraging and a very good liquidity profile, Moody’s said.

The agency also said it expects that the company will continue to grow over the next 12 to 18 months, supported by favorable industry trends, its commercial relationship with Sky plc and continued investment in technology and marketing.

This is despite anticipated tax increases and intensified competition given the recent wave of consolidation in the sector, Moody’s said.

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