S&P revises Rackspace view to positive

S&P said it revised the outlook for Rackspace Technology Global Inc. to positive from stable and affirmed the company’s B issuer rating, the B+ rating on its senior secured debt and the B rating on its senior unsecured debt. The recovery ratings are unchanged.

“The positive outlook reflects Rackspace Technology’s improved credit metrics after its IPO and subsequent debt paydown, with leverage and other metrics approaching our upside threshold. We expect that Rackspace Technology will display modest revenue growth over the next few years, as churn in legacy segments is offset by growth in multi-cloud services and its applications businesses,” S&P said in a press release.

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