Moody’s upgrades Match Group’s senior unsecured note rating to Ba2

Investing.com -- Moody’s (NYSE:MCO) Ratings has upgraded the senior unsecured note rating of Match Group (NASDAQ:MTCH) Holdings II, LLC, a wholly-owned subsidiary of Match Group, Inc., to Ba2 from Ba3. The credit rating agency also affirmed Match’s Ba2 corporate family rating (CFR) and Ba2-PD probability of default rating (PDR). The existing Ba1 rating on the senior secured revolving credit facility has been withdrawn, while the speculative grade liquidity for Match remains unchanged at SGL-1. The outlook for the company is stable.

The upgrade comes after Match Group repaid a $425 million senior secured term loan B in January 2025, significantly reducing the secured debt in the company’s capital structure. Post repayment, the only secured debt ahead of the unsecured notes is the $500 million revolving credit facility. This repayment has led to a decrease in pro forma leverage to approximately 3.4x from roughly 3.8x.

Match Group’s Ba2 CFR is supported by its leading position in the global online dating market, primarily led by its Tinder and Hinge brands. The company’s leverage is moderate and expected to decline slightly in 2025, while it continues to generate high levels of operating cash flow. The company’s growth is further supported by its geographic diversity and expected expansion outside the US.

However, Match’s credit profile is limited by its narrow business focus in a highly competitive industry, with around 57% revenue concentration in the Tinder brand. While Match has a portfolio of different dating brand names, some of them are in decline and future growth will largely depend on results from its Tinder and Hinge brands as well as newer dating app offerings. The company faces significant competition from companies including Bumble (NASDAQ:BMBL) and Meet Group, among others.

The company’s senior secured revolving credit facility rating has been withdrawn following a review of the issuer’s request. Match is expected to maintain very good liquidity over the next 12-15 months, supported by about $966 million of cash as of Q4 2024 and an undrawn $500 million revolving credit facility. The revolver’s maturity date is the earlier of March 2029 or 91 days prior to the maturity of the senior notes due in 2027, 2028, or 2029.

Match Group, headquartered in Dallas, Texas, is a global online dating provider offering services in over 40 languages through its major brands including Tinder, Hinge, Match, Meetic, OkCupid, Pairs, PlentyOfFish, Azar and more. The company separated from InterActiveCorp (IAC) in June 2020 and reported revenue of approximately $3.5 billion LTM Q4 2024.

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