Moody's boosts Open Text

Moody's Investors Service said it upgraded Open Text Corp.'s corporate family rating to Ba2 from Ba3 and its senior secured loan facilities to Ba1 (LGD2, 21%) from Ba2 (LGD2, 22%).

The rating outlook remains positive.

The upgrade were driven by the company's increasing breadth of products within the enterprise content management software industry, continued strong cash flow generation, resilience exhibited through the economic downturn and continued conservative financial management, according to the agency.

The Ba2 rating reflects the company's leading position within the ECM market with one of the broadest suites of products in the industry, the agency said.

Ratings also reflect the minimal disruption experienced by the company in the current downturn and conservative financial policies, with leverage at 1.7x as of June 30 on an Moody's adjusted basis.

The rating is constrained by limited diversification as well as the company's potential for additional acquisitions, the agency said.

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