S&P boosts Open Text outlook to stable

Standard & Poor's said it revised its outlook on Open Text Corp. to stable from negative.

At the same time, S&P said it affirmed the ratings, including the BB- long-term corporate credit rating, on the company.

The agency added that the outlook revision reflects the combination of a largely successful integration of Hummingbird Ltd., improved outlook for growth in software license revenues and a substantial improvement in adjusted debt leverage and corresponding credit measures from reducing debt in recent quarters.

The ratings on Open Text are also constrained by the highly competitive and consolidating technology marketplace in which it operates, characterized by larger, more-integrated providers and an aggressive financial policy that includes an acquisitive growth strategy, S&P 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.