S&P upgrades Ciena, rates new loan BB

Standard & Poor’s said it raised the corporate credit rating to B+ from B on Ciena Corp.

The agency also said it assigned a BB rating to the company’s new $200 million senior secured term loan and raised the rating to BB from BB- on the company’s existing $250 million senior secured credit facilities. The 1 recovery rating indicates 90% to 100% expected default recovery.

S&P also said it affirmed the B rating on the company’s senior unsecured debt. The 5 recovery rating indicates 10% to 30% expected default recovery.

The outlook is stable.

The upgrade reflects Ciena’s improved financial risk profile based on its adjusted gross leverage of less than 5x pro forma for the proposed $200 million term loan B, which is expected to significantly improve to the low 3x range after the 2017 convertible matures, S&P explains.

The stable outlook reflects an expectation that stable 100G and product demand will lead to good revenue grown, also helped by its diversifying customer base, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.