Fitch downgrades Magenta Buyer

Fitch Ratings said it downgraded Magenta Buyer LLC's (Trellix and Skyhigh Security and formerly McAfee Enterprise) first-lien term loan and revolver to B+/RR2 from BB-/RR2 and the second-lien term loan to CCC/RR6 from CCC+/RR6. The agency also lowered the long-term issuer default rating to B- from B.

“The downgrade reflects Magenta Buyer's declining performance and competitive position despite growth by its peers. Fitch expects the company's revenues to fall in 2023 and EBITDA margins to weaken. The downgrade also reflects the potential for negative FCF in 2023 and 2024 due to weaker EBITDA generation and higher interest expenses,” Fitch said in a press release.

The outlook is stable.

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