Fitch Ratings has assigned Gorilla Technology Group Inc (Gorilla) a Long-Term Issuer Default Rating (IDR) of 'B-?'?.
The Outlook is Positive.
The 'B-?' rating reflects Gorilla's execution risks stemming from the transition as legacy provider of security, network and business intelligence, as well as IoT solutions into data center management (with new contracts structured via separate ring-fenced SPVs), its small scale, and high customer concentration. This is mitigated by fully owning the operative SPVs and the underlying strong contracts' structure with prominent global off-takers.
Leverage is high on an SPV-deconsolidated basis. Deleveraging is supported by EBITDA growth with good visibility over the next few years. Under the SPV-dominated future balance sheet we expect dividends to start flowing to Gorilla from 2029, or earlier, as project-finance debt is repaid, accelerating deleveraging.
The Positive Outlook reflects our expectation that, on an SPV-deconsolidated basis, EBITDA leverage should decline below 6x by 2028, suggesting potential for an upgrade over the next 12 to 18 months.
Key Rating Drivers
High Customer Concentration Improving: Gorilla operates as a data center manager delivering graphics processing unit-as-a-service (GPUaaS) and capacity through three newly created ring-fenced SPVs. The company also retains two legacy contracts with Egypt's Department of Defense and Taiwan's Ministry of Transportation. Revenue remains highly concentrated albeit geographically diversified.
Gorilla is working on generating revenues from new initiatives, such as delivering AI infrastructure equipment and the associated memory to customers in Taiwan and SE Asia and turning on to recurring maintenance revenues (e.g. in Egypt). Expanding its customer base could help mitigate these risks, reducing FX mismatch if future revenues/costs and debt are largely US dollar-denominated.
High Execution Risks: Gorilla is transitioning from a small IT services provider into a data center operator and GPUaaS following the recent signing of new contracts funded through the three ring-fenced SPVs. The SPVs' revenues are fully contracted on long-dated take-or-pay terms, but Fitch views financing and overall execution risks as the dominant near-term rating consideration as Gorilla needs to finance the equipment purchases.
Gorilla has prior experience designing and delivering data centers, which supports its ability to deliver under the new contracts. The group is not exposed to demand risk associated with an uncontracted build. However, based on Fitch's rating construction, cash reaches Gorilla (parent company) only through dividends up-streamed when possible, subject to strong cash-sweep and debt service coverage ratio clauses.
Small Scale, a Near Term Constraint: Overall EBITDA scale at the parent level remains significantly smaller than peers, constraining the rating. Gorilla operates on a limited scale, leaving minimal cushion to absorb execution missteps, until new contracts are fully operational, subject to other contracts' renewals and extensions, and AI infrastructure sales being executed. During the group's business model transition, Fitch expects SPV-deconsolidated EBITDA will grow to USD34 million by 2027, supported by the above initiatives and the parent's ability to charge costs to the new SPVs.
Modest Parent Level Scale Improving: There is material upside potential by 2027-2028 if extensions and revenue initiatives materialize per management's plans. Longer term, we forecast SPV-deconsolidated EBITDA to grow towards USD129 million by 2030 as we model the first up streamed dividends from SPVs. Greater revenue diversification and resilience will be key for the future ratings trajectory.
High Leverage, Room for Deleveraging: Fitch rates Gorilla on an SPV-deconsolidated basis. The group's USD230 million convertible notes due 2031 have increased EBITDA gross leverage to 8.7x in 2026, improving to 7.2x (2027) and 5.8x (2028), suggesting strong potential for a one-notch upgrade. Further positive rating momentum will hinge on a proven ability to optimize project financing terms, extracting equity residuals or aggressively paying down SPV-related debt, improving Gorilla's (parent company) cash flows.
Consolidated Leverage Lower: On a consolidated basis, including the three ring-fenced SPVs, leverage would be materially lower - 3.6x in 2027 and 2.5x in 2028 - decreasing to 1.7x in 2029 and 1.3x in 2030 as project-finance facilities amortize. Accelerated repayment of project finance debt, including refinancing and full recourse of holding company creditors to cash flows from the newly signed or future service contracts, could prompt us to change our focus to a consolidated credit profile, providing upside to the rating if the group demonstrates a successful record and contract execution.
AI Demand Supports Growth: Gorilla is well positioned to benefit from rising demand for AI and machine learning applications, as global data center workload dedicated to AI to grow from 44 GW in 2025 to over 150 GW by 2030. This demand is propelled by advancements in AI algorithms and data proliferation, increasing demand for GPU infrastructure. Demand drivers are solid in Gorilla's geographical footprint, mainly south-east Asia, where the constraint is not customer demand but access to deployable power and GPU capacity. Fitch expects Gorilla to secure customer commitments before committing most project capex.
Opportunistic Financial Behavior: Capital allocation remains focused on data center management investments - where demand is increasing fast outside Europe and the US, instead of M&A or dividends to shareholders. However, Fitch views Gorilla's financial policy as aggressive, as no public leverage target or committed capital structure has been disclosed. Gorilla recently raised USD232 million through two unsecured convertible notes due 2Q31 to fund the SPVs. Fitch views both convertible bonds as debt in its leverage computation while parent company creditors remain structurally subordinated to SPV-related project finance creditors.
Available Liquidity: The rating reflects our view of sufficient liquidity for debt service at the Gorilla level with cash on balance sheet expected to remain above USD100 million over the rating horizon, with approved revolving credit facilities (RCF) at Gorilla Taiwan and NS Guard totaling TWD430 million (USD13 million equivalent). Our assessment of the liquidity profile could change to fully satisfactory if we see positive free cash flow (FCF) during 2026-2028 on an SPV-deconsolidated basis, following negative FCF in 2024-2025.
Peer Analysis
Gorilla operates as an IT services provider in Egypt and Taiwan and has recently pivoted into digital infrastructure management as a data center operator. Its peers include Equinix, Inc. (BBB+/Stable), Digital Realty Trust, Inc. (BBB/Stable), CoreWeave, Inc. (BB-/Positive), and Viasat, Inc. (B/Stable).
Gorilla's smaller scale, shorter operating record and uncertain contract renewal rates are weaker than its larger, more established peers. This is partly mitigated by multi-year, fully contracted take-or-pay agreements and the rapid amortization profile of the ring-fenced SPV debt facilities.
Equinix, Digital Realty and CoreWeave are leading data center operators comparable to Gorilla in many aspects. Equinix and Digital Realty derive operational stability from data center ownership and real estate leasing. CoreWeave, by contrast, relies on technology-centric services and leased facilities, leaving it more exposed to shifts in customer demand and technological change, and therefore to higher earnings volatility despite CoreWeave's materially larger scale.
Viasat, a satellite operator, offers a comparison on leverage and technology intensity. Like Gorilla's main SPV's activities, Viasat operates in a capital-intensive sector requiring continuous investment and adaptation to technological change - something that Gorilla is exposed to due to planned GPU upgrades or further investments required especially to secure contract renewals.
Fitch's Key Rating-Case Assumptions
Fitch excludes the three, fully ring-fenced and non-recurse funded SPV's operations from Gorilla
Total revenue on an SPV-deconsolidated basis trending above USD54 million by 2028 subject to contracts' renewals and extensions, and AI infrastructure sales. Revenue growth expected to accelerate as dividends payout from the fully-owned SPVs will take place from 2029 (possibly earlier)
EBITDA margin expanding to over 80% by 2029, driven by data center operations
Minimal capex outflows, albeit subject to future contracts and renewals
No debt repayment at Gorilla assumed
No dividends assumed to be paid by Gorilla to external shareholders
Corporate Rating Tool Inputs and Scores
Fitch scored the issuer as follows, using our Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP):
Business and financial profile factors (assessment, relative importance): management ('bb-?'?, Moderate), sector characteristics ('bb+', Lower), market and competitive positioning ('b+', Moderate), diversification and asset quality ('b', Higher), company operational characteristics ('bb', Moderate), profitability ('a-?'?, Lower), financial structure ('ccc+', Higher), and financial flexibility ('bb-?'?, Moderate).
The quantitative financial subfactors are based on custom CRT financial period parameters: 50% weight for the forecast year 2028, 40% for the forecast year 2029 and 10% for the forecast year 2030.
The governance assessment of 'good' has no impact.
The operating environment assessment of 'a' has no impact.
The SCP is 'b-?'?.
To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in an IDR of 'B-?'?.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
SPV-deconsolidated gross EBITDA leverage sustained above 8.5x;
Failure to achieve greater scale or contract diversity, increasing liquidity and customer concentration risks
Inability to access conventional debt capital on favorable terms to support its growth strategy.
Neutral or volatile FCF margin
We could revise the Outlook to Stable if SPV-deconsolidated gross EBITDA leverage was sustained above 6.5x or there were visible missteps in contracts execution that require an additional equity contribution from the parent
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
SPV-deconsolidated gross EBITDA leverage sustained below 6.5x;
Greater circulation of cash flow within the group on an unrestricted basis;
Diversification into new markets or services and demonstrated ability to renew or replace major contracts, improving overall business resilience.
Liquidity and Debt Structure
Fitch expects Gorilla to have sufficient cash on balance sheet to support its day-to-day operations supported by some committed undrawn bank lines at Gorilla Taiwan and NS Guard totaling TWD430 million (approximately USD13 million). The liquidity cushion should strengthen if FCF turns structurally positive, even before dividends start flowing from SPVs in 2029. Fitch expects limited capex and working capital requirements in the short to medium term for Gorilla (excluding the SPVs).
There will not be any meaningful debt repayment requirements (on an SPV deconsolidated basis) before the USD230 million convertible debt becomes due in 2031 (if not converted into equity by then).
Issuer Profile
Gorilla is a UK-based technology service provider of security, network, IoT and business intelligence solutions with operations mostly across southeast Asia and India, deploying a portfolio of over 25,000 NVIDIA GPUs.
Date of Relevant Committee
05-Aug-2026
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Click here to access Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in our credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included.
Climate Vulnerability Signals
The results of our Climate.VS screener did not indicate an elevated risk for Gorilla.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.
RATING ACTIONS
Entity / Debt
Rating Type
Rating
Rating Action
Gorilla Technology Group Inc
LT IDR
B-
New Rating
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The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer's available public disclosure.
APPLICABLE CRITERIA
Corporate Rating Criteria (pub. 10 Jan 2026) (including rating assumption sensitivity)
Sector Navigators - Addendum to the Corporate Rating Criteria (pub. 10 Jan 2026)
APPLICABLE MODELS
Numbers in parentheses accompanying applicable model(s) contain hyperlinks to criteria providing description of model(s).
Corporate Monitoring & Forecasting Model (COMFORT Model), v8.2.0 (1)
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Gorilla Technology Group Inc EU Issued, UK Endorsed
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