Jun. 26 at 8:42 PM
Moody’s Ratings affirmed RingCentral Inc.'s corporate family rating at Ba2 and probability of default rating at Ba2-PD, while downgrading its senior unsecured notes to B1 from Ba3 due to their reduced share in the company's capital structure as management prioritizes repaying unsecured debt. The outlook remains stable.
The agency cited RingCentral's improving profitability, stronger free cash flow generation and significant deleveraging as key factors supporting the Ba2 rating. Moody’s-adjusted debt-to-EBITDA fell to 3.0x for the 12 months ended March 31, 2026, from 5.9x at the end of 2024, following more than
$300 million in debt reduction. Moody’s expects leverage to decline below 2x by year-end 2026 as free cash flow is used to repay debt and EBITDA margins continue to improve.
$RNG