Moody's upgraded Equinix Inc.'s corporate family rating to Ba2 from Ba3 and its senior unsecured ratings to Ba2 from B1.
The rating agency also upgraded the data center real estate investment trust's speculative grade liquidity rating to SGL-2 from SGL-3, which it said suggests good liquidity.
The outlook is stable.
Moody's attributed the upgrade to its expectations that Equinix's steady revenue growth and key debt credit metrics will improve within the next 12 to 18 months. The upgrade is also supported by the quality and scale of the REIT's global data center portfolio, the rating agency added.
The stable outlook is driven by the potential for Equinix's leverage to steadily approach 4.5x by the end of 2020, and for the company to fund growth with a prudent mix of debt and equity capital, according to Moody's.