Moody's assigns to Digi, loans B2

Moody's Investors Service said it assigned a first-time B2 corporate family rating to Digi International Inc. The agency also gave a B2 rating to Digi's planned term loan b and revolving credit facility, B2-PD probability of default rating and a speculative grade liquidity rating of SGL-1.

“Digi's B2 CFR reflects the company's relatively small scale in its core Internet of Things (IoT) products and services businesses, and moderate pro forma financial leverage of just over 5.1x (Moody's adjusted). In 2020 and through the first half of 2021, Digi has been negatively impacted by the Covid-19 pandemic in all of its business segments, and more recently by lingering product availability constraints due to the global semiconductor chip shortage, which has resulted in slower than previously anticipated revenue growth,” Moody’s said in a press release.

The proceeds will be used to fund the acquisition of Ventus Global Networks Solutions and refinance debt.

The outlook is stable.

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