S&P rates Polycom loans B+, B-

S&P said it assigned a B corporate credit rating to Polycom Inc.

The agency also said it assigned a B+ rating and 2 recovery rating to the company's $800 million first-lien credit facility, consisting of a $50 million revolver due in 2021 and $750 million first-lien term loan B due in 2023.

The 2 recovery rating indicates 70% to 90% expected default recovery.

S&P also said it assigned a B- rating and 5 recovery rating to the company's $175 million second-lien term loan due in 2024.

The 5 recovery rating indicates 10% to 30% expected default recovery.

The outlook is stable.

The ratings reflect Polycom's declining market share and niche products within the highly competitive and transitioning unified communications industry, the agency said.

These risks are partially mitigated by the company's strong brand, large footprint with enterprise customers, deepening partnership with Microsoft and new product offerings, S&P said.

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