S&P rates AppLovin, facility B+

S&P said it assigned its B+ issuer credit rating to AppLovin Corp.

The outlook is stable.

At the same time, the agency assigned its B+ issue level and 3 recovery ratings to the company's $870 million first-lien credit facility, consisting of a $820 million first-lien term loan due in 2025 and a $50 million revolving credit facility due in 2023.

The 3 recovery rating indicates an expectation of meaningful (50%-70%; rounded estimate: 60%) recovery in the event of default.

“The rating on AppLovin reflects the company's limited track record, high dependence on specific niches within mobile applications (apps), and uncertainty surrounding the competitive environment as the mobile marketing technology industry matures,” S&P said in a news release.

“Partially offsetting these risks are the company's strong expected revenue growth well in excess of expected GDP growth, good cash flow metrics and favorable reputation.”

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