Moody's upgrades SolarWinds

Moody's Investors Service said it upgraded SolarWinds Holdings, Inc.'s corporate family rating to B1 from B2 and upgraded its probability of default rating to B1-PD from B2-PD. Moody's also affirmed the B1 ratings on SolarWinds' senior secured bank credit facilities. The SGL-1 speculative grade liquidity ("SGL") rating remains unchanged. The outlook is stable.

The upgrade to B1 reflects Moody's expectation for SolarWinds' continued strong EBITDA growth and free cash flow generation, which has enabled the company to de-lever over the last 12 months. SolarWinds has reduced leverage to about 5x for the last 12 months ended Sept. 30 from about 5.7x in the year-ago period. Moody's said it expects leverage and cash flow will continue to improve over the next 12 to 18 months, to levels further supportive of the B1 CFR.

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