S&P raises Go Daddy CCR to B+, loan to BB-

Standard & Poor's said it raised its corporate credit rating on Go Daddy Operating Co. LLC to B+ from B and removed the ratings from CreditWatch, where they were placed with positive implications on March 20.

The outlook is stable.

At the same time, the agency raised its issue-level rating on the company's senior secured first-lien credit facility to BB- from B. The recovery rating was revised to 2 from 3, indicating an expectation for substantial recovery (70%-90%; low end of the range) of principal in the event of a payment default.

"The upgrade reflects our expectation that GoDaddy Inc. will be using most of its IPO proceeds to repay $300 million in debt, including prepayment premiums and accrued interest associated with the repayment, and that its debt leverage will continue to decline," S&P credit analyst Elton Cerda said in a news release.

The agency expects that the company will use its internally generated cash flow for investments and acquisitions. This in turn would support Go Daddy Operating Co. international expansion and new product rollout.

S&P also expects the company to make tuck-in acquisitions without additional debt leverage.

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