S&P raises GoTo Group

S&P said it raised its ratings on GoTo Group Inc. to CCC+ from SD, Selective Default, and the issue-level rating on the secured senior notes due September 2027 that were not exchanged to CCC- from D and revised the recovery rating to 6 from 3. The agency subsequently withdrew its ratings for the issuer.

The outlook was stable at the time of withdrawal.

“We view GoTo's capital structure as unsustainable. Despite the below-par debt exchange for substantially all its funded debt, the company's debt to EBITDA remains elevated. We estimate pro forma leverage to be approximately 8.4x compared with 9.3x at Sept. 30, 2023, and forecast it to be about 8.3x at the end of 2024,” S&P said in a statement.

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