Moody's ups Thoughtworks loan rating

Moody's Investors Service said it raised Thoughtworks, Inc.’s senior secured first-lien instrument credit rating to B1 from B2. The company is a wholly-owned subsidiary of Thoughtworks Holding, Inc.

The agency also withdrew Thoughtworks Inc.’s B2 ratings and assigned a B1 corporate family rating, a B1-PD probability of default rating and a SGL-1 speculative grade liquidity rating to Thoughtworks Holding.

“The ratings actions are based on the continued strong performance of the company and deleveraging as a result of voluntary debt repayment following the initial public offering, which improved credit metrics to levels that are in line with a B1 CFR. Moody's believes that the company is poised to benefit from very strong industry dynamics where the demand for IT services is accelerating and will lead to earnings growth for the company. The company has diversified its customer base and has been able to grow revenue that is now approaching $1 billion annually with leverage expected to decline to below 3x by the end of 2022,” the agency said in a press release.

The outlook remains stable.

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