S&P affirms Open Text

Standard & Poor’s said it affirmed its BB+ long-term corporate credit rating and stable outlook on Open Text Corp. At the same time, S&P affirmed its BBB issue-level rating, with a 1 recovery rating, on Open Text’s senior secured revolver and term loans.

“We are revising our liquidity assessment on Open Text to strong from adequate based on our view that the company’s sources of liquidity will exceed its uses by more than 1.5x in the next two years and will remain positive even if forecasted EBITDA were to decline by 30% with no covenant breach under such a circumstance,” said S&P credit analyst David Fisher in a news release.

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