S&P: Arris International BB

S&P said it assigned a BB corporate credit rating to Arris International plc.

The agency affirmed, and then subsequently withdrew, the BB corporate credit rating on Arris International plc subsidiary, Arris Group Inc.

S&P said it affirmed the BB rating on the company's first-lien credit facilities, consisting of a $500 million revolving credit facility, $1.1 billion term loan A, $800 million term loan A-1 and $825 million term loan B.

The recovery ratings remain at 3, indicating 50% to 70% expected default recovery.

The outlook is stable.

The ratings reflect the company’s exposure to the highly volatile communications equipment market, high level of customer concentration, weak near-term demand for consumer premise equipment products and highly acquisitive growth strategy, the agency said.

Recently improved scale, growing international diversity and a leading intellectual property portfolio offset these risks somewhat and should help Arris navigate coming technology shifts in its core end markets, S&P said.

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