Moody's Ratings has upgraded StubHub Inc's Corporate Family Rating to B2 from B3, citing the live-event ticketing marketplace's debt-reduction efforts and a stable outlook. The agency also raised the company's Probability of Default Rating and senior secured bank credit facility ratings to B2. Moody's pointed to StubHub's voluntary repayment of $350 million in debt from excess cash flow since late 2025, plus an additional $100 million paydown after the second quarter of 2026, as key drivers of the upgrade. Although Moody's-adjusted leverage stood at 8.5x at the end of the second quarter, the agency expects it to fall to 5.7x by year-end 2026 on mid-to-high single-digit gross merchandise sales growth and margin expansion. Liquidity remains a strength, with a fully undrawn $565 million senior secured revolving credit facility maturing in 2030 and projected annual free cash flow of $280 million to $300 million net of seller payables. The stable outlook assumes leverage stays below 6x, though Moody's warned that regulatory headwinds or market share loss could pressure the rating, while further upgrades would require debt-to-EBITDA below 5x and a formal conservative financial policy.
StubHub Holdings, Inc.Moody's upgraded StubHub to B2 citing $450M debt paydown and expected deleveraging to 5.7x by year-end 2026.
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