Moody's rates Kyndryl notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to Kyndryl Holdings, Inc.'s planned senior unsecured notes.

“The Baa2 issuer rating reflects Kyndryl's large revenue scale and good multi-year revenue and profit visibility from an approximately $60 billion contract backlog. Kyndryl delivers service for many of the most complex IT environments in the world, through over 90,000 employees, many of them with highly-sought-after and hard to find IT skills, serving over 4,000 customers in over 100 countries. Kyndryl's assets include its contract backlog, over 3,000 patents and control of many millions of square feet of data centers around the world. Moody's expects Kyndryl will maintain good credit metrics, including debt to EBITDA around two times and EBITA to interest above seven times, as well as at least $500 million of free cash flow,” Moody’s said in a press release.

The notes are part of the planned spinoff from IBM.

The outlook is stable.

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