Moody’s gives Iron Mountain notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to Iron Mountain Inc.’s new senior euro notes due in 2025.

All other ratings, including the Ba3 corporate family rating and the stable outlook, are not affected.

The company expects to use the proceeds from the new notes offering for general corporate purposes, including repayment of outstanding borrowings under the revolving credit facility.

Iron Mountain's corporate family rating is weakly positioned in the Ba3 category and reflects its elevated leverage (5.7 times, Moody's adjusted total debt to EBITDA at 1Q 2017) and projected free cash flow deficits over the next 2 years. Though leverage is elevated, the rating incorporates the agency’s view that management is committed to reducing leverage to below 5 times by 2020.

Moody's said it expects modest organic growth, synergies from the Recall acquisition and cost savings implemented under Iron Mountain's business transformation initiatives will progressively drive leverage to 5 times over the next two to three years.

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