Moody's revises Verint to SGL-2

Moody's Investors Service said it revised Verint Systems Inc.'s speculative grade liquidity rating to SGL-2 from SGL-3 as a result of the recent credit facility amendment, which loosens financial covenants and increases the size of the revolver.

The company's leverage covenant previously stepped down to 2.5x in January 2011 but as amended will remain at 3.5x until January 2012 when its steps to 3x, Moody's said.

The agency said it viewed the previous step down as challenging to meet. The revolver also was increased to $75 million from $15 million providing additional liquidity to the company, the agency added. The B1 corporate family rating and other ratings remain unchanged.

The SGL-2 rating reflects the company's cash on hand and increased revolver availability partially offset by high costs incurred as part of the restatement process, Moody's said.

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