Moody’s ups Open Text loan, rates loan Baa3

Moody's Investors Service said it upgraded Open Text Corp.'s $800 million senior secured term loan B to Baa3 from Ba1, assigned a Baa3 rating to the company's new $300 million senior secured revolving credit facility and revised the probability of default rating to Ba1-PD from Ba2-PD.

The Ba1 corporate family rating and all other ratings were affirmed.

The outlook remains negative.

Moody’s said the upgrade of the term loan and revision of the probability of default rating reflect the introduction of unsecured debt into Open Text's capital structure and reduction of outstanding secured debt following the closing of the company's December 2014 $800 million unsecured note offering and subsequent paydown of the $600 million ($492 million outstanding balance) secured term loan A. The debt instrument ratings are determined in conjunction with Moody's Loss Given Default Methodology.

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