S&P affirms Corel

Standard & Poor's said it affirmed its B long-term corporate credit and senior secured debt ratings on Corel Corp., following the company's announcement to acquire InterVideo Inc.

At the same time, S&P said it affirmed its B bank loan rating, with a recovery rating of 3, on the company's $265 million credit facility.

The outlook is positive.

The agency said that the bank facility was increased to $265 million from $165 million and now consists of a $190 million term loan due 2012 and a $75 million revolver due 2011.

"The ratings on Corel reflect its weak market position within the highly competitive packaged software industry, a limited track record of profitability and the short life span of software products in general," said S&P credit analyst Madhav Hari.

"These factors are only partially offset by Corel's brand recognition as a viable alternative to globally dominant packaged software providers, a large and diverse installed base and a meaningful base of recurring revenue."

© 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.