Moody’s rates Equinix notes B1

Moody's Investors Service said it affirmed the Ba3 corporate family rating for Equinix, Inc. and assigned a B1 (LGD5) rating to its proposed new unsecured euro note offering.

The agency also affirmed the Ba3-PD probability of default rating, SGL-3 speculative grade liquidity rating and B1 (LGD5) unsecured debt rating.

Moody's said it changed the outlook to stable from positive based on the incremental leverage associated with a series of recent debt financed transactions. The agency now forecasts Equinix's leverage to be near 6 times (Moody's adjusted) pro forma for the acquisitions of Metronode, Infomart and the bond issuance announced on Feb. 27.

Moody's said it expects leverage to remain above 4.5 times (Moody's adjusted) for an extended period because of Equinix's persistent M&A activity and its annual cash deficits from high capex and dividends.

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