S&P gives Viavi, notes BB+

S&P said it gave BB+ ratings to Viavi Solutions Inc. and its planned $400 million of senior unsecured notes due 2029.

“Viavi's concentrated communications end market may lead to meaningful revenue volatility. Viavi has established market positions in core areas, with somewhat modest scale relative to larger players such as Keysight Technologies Inc. (BBB/stable/--) and a niche industry position. But we believe cyclical communications service provider spending can cause greater business volatility that may suppress the company's key testing and monitoring areas,” S&P said in a press release.

Viavi’s core networking and service enablement business delivered 70% of revenues as of the fiscal year ended in June.

Viavi plans to use the proceeds to for general corporate purposes, to fund cash on its balance sheet, used for a repurchase of $275 million of convertible debt.

The outlook is stable.

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