Fitch changes Gigamon view

Fitch Ratings said it affirmed the long-term issuer default rating for Gigamon, Inc. at B and revised the outlook to negative from stable.

The agency also affirmed the BB-/RR2 rating for Gigamon's $50 million first-lien secured revolving credit facility and $397 million first-lien secured term loan, and the CCC+/RR6 for its $150 million second-lien secured term loan.

“The negative rating outlook reflects the delay in deleveraging as the company plans to increase operating expenses to expand its market coverage that could suppress near-term profitability with the expectation of stronger revenue growth in the mid-term,” the agency said in a news release.

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