July 25, 2008

Iron Mountain\'s CFR raised to \'B1\' from \'B2\' - Moody

Moody's Investors Service said that it has raised Iron Mountain Inc's corporate family rating to 'B1' from 'B2' with a stable outlook.

Moody's said that “Notwithstanding higher than anticipated capital expenditures and year end compensation and benefit accruals, the upgrade recognizes continued strength in operating performance, including continued strong growth in storage revenues and improved debt maturity structure and overall liquidity following last year's refinancing activity.”

Moody's said the upgrade also incorporates its belief that the primary focus of the company has shifted from growth through acquisitions to achieving increased operational efficiencies.

It said that “The 'B1' CFR is supported by the company's prominent position as a global leader in information storage and data protection, including its strategic expansion in the digital market in recent years, as well as Moody's expectation of reduced emphasis on acquisitions relative to the company's current size going forward. However, the ratings continue to be constrained by high financial leverage, significant amount of goodwill and intangibles in relation to total assets and the low level of pro forma free cash flow relat