Moody's upgrades Monotype

Moody's Investors Service said it upgraded Monotype Imaging Holdings Inc.'s corporate family rating to B2 from B3, its probability of default rating to B2-PD from B3-PD and the company's first-lien senior secured credit facility's rating to B1 from B2.

“The upgrade of the CFR to B2 from B3 reflects strong business momentum and good strategy execution over the last two years that has led to material improvement in the company's credit metrics. Given the company's strong sales pipeline and good conversion rates, Moody's expects further strengthening of the company's credit profile with a debt to EBITDA (Moody's adjusted) likely to decline towards 4x by the end of 2023. Ongoing secular demand trends and increased adoptions of fonts by enterprise customers will be supported by double-digit organic revenue and EBITDA growth over the next 12-18 months,” the agency said in a press release.

The outlook is stable.

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