Moody’s rates Rackspace CFR, notes Ba1

Moody's Investors Service said it assigned a Ba1 corporate family rating and a Ba1-PD probability of default rating to Rackspace Hosting, Inc.

The agency also assigned a Ba1 (LGD4) rating to the company's proposed senior unsecured notes due 2024 and an SGL-1 speculative grade liquidity rating, reflecting very good liquidity.

The outlook is stable.

Proceeds from the notes will be used to repay the company's existing revolving credit facility and to fund a portion of its recently announced $1 billion share repurchase program.

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