Moody’s changes Go Daddy to positive

Moody's Investors Service said it affirmed Go Daddy Operating Co., LLC's Ba3 corporate family rating, Ba3-PD probability of default rating and the Ba3 ratings for its senior secured credit facilities.

The agency also changed Go Daddy's outlook to positive from stable and affirmed the company's SGL-1 speculative grade liquidity rating.

Moody’s said the outlook change reflects its expectations that Go Daddy's credit metrics will continue to strengthen from solid revenue and free cash flow growth. The agency expects Go Daddy's revenues to grow by about 14% and this will drive free cash flow to about 20% of total adjusted debt over the next 12 to 18 months, from 15% in 2015.

Moody's expects Go Daddy's leverage (total debt to cash flow from interest plus interest expense, Moody's adjusted) to progressively decline toward 3 times over this period.

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