StubHub Credit Rating Upgraded to B2 by Moody's on Debt Reduction

Moody's Ratings has upgraded StubHub Inc.'s Corporate Family Rating to B2 from B3, reflecting growing confidence in the ticketing marketplace's strategy to strengthen its balance sheet. The ratings agency also raised the company's Probability of Default Rating and its senior secured bank credit facility ratings to B2, while assigning a stable outlook.

Debt Reduction Drives Upgrade

The upgrade was primarily driven by StubHub's proactive efforts to reduce its debt load, according to the Moody's report. The company made voluntary debt repayments totaling $350 million since late 2025, utilizing excess cash flow. An additional $100 million was paid down after the second quarter of 2026.

These actions follow a period in 2024 and 2025 when heavy spending on performance marketing and other one-time costs significantly compressed the company's core profitability. Moody's cited the debt paydown as a key governance factor supporting the improved rating.

Improving Credit Metrics

Moody's projects a significant improvement in StubHub's financial leverage. While the agency's adjusted leverage for the company was a high 8.5x at the end of the second quarter, it is forecast to decline to 5.7x by the end of 2026. This projection is based on expectations of mid-to-high single-digit growth in gross merchandise sales and expanding profit margins.

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The company's liquidity position is considered a key strength. Moody's noted StubHub's strong internal cash generation and a fully undrawn $565 million revolving credit facility. The agency anticipates the company will generate $280 million to $300 million in annual free cash flow, which should cover its needs without drawing on the facility ahead of its 2030 term loan maturities.

Stable Outlook and Path Forward

The stable outlook reflects Moody's expectation that StubHub will maintain leverage below the 6x threshold while sustaining solid profitability. The company's large scale as a leading secondary ticketing platform provides it with operational flexibility in a competitive market.

However, the agency cautioned that future downgrades could be triggered by regulatory challenges or a significant loss of market share. Conversely, a further upgrade would be contingent on StubHub consistently maintaining a debt-to-EBITDA ratio below 5x and formally adopting a more conservative financial policy.