S&P rates Kyndryl BBB-

S&P said it assigned a BBB- rating to Kyndryl Holdings Inc., a wholly owned subsidiary of International Business Machines Corp. that will be spun off from IBM in the fourth quarter 2021.

“The vast majority of the company's revenue comes from long-term contracts (about five years on average), providing good revenue visibility over the next three years. Furthermore, we view Kyndryl managed services which include hosting, network and telecom, end-user services, service management, physical and virtual infrastructure management, and information security as nondiscretionary. Kyndryl usually owns its clients' technology infrastructure, supporting its 94% renewal win rates and high client retention,” S&P said in a press release.

The outlook is stable.

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