S&P Global Ratings upgraded 's corporate creditrating to BB- from B+following the closingof the company's purchase of Australian peer Recall Holdings Ltd.
The outlook is stable.
S&P attributed the upgrade to its view that theacquisition will enhance Iron Mountain's scale and geographic diversification, whilereducing the company's exposure to the more mature North American market andexpanding its footprint in faster growing global markets.
The rating agency also assumes that improved operatingmargins will lead Iron Mountain's pro forma leverage to moderate to the low-5xarea by 2017 and to below 5x in 2018.
The stable outlook, meanwhile, is based on S&P'sexpectations for the company to deliver low- to mid-single-digit organicrevenue growth by leveraging expanded size, scale and geographic diversification,while enhancing its operating margins and moderating leverage.
S&P Global Ratingsand S&P Global Market Intelligence are owned by S&P Global Inc.