Moody's upgrades Open Text

Moody's Investors Service said it upgraded Open Text, Inc.'s corporate family to Ba1 from Ba2, speculative-grade liquidity rating to SGL-1 from SGL-2 and probability of default rating to Ba2 from Ba3.

The agency also said it affirmed the Ba1 rating on the company's senior secured debt.

The outlook is stable.

The upgrade was driven by the company's improved liquidity profile as a result of its new bank facility, Moody's said, and relatively low level of debt-to-EBITDA, which is expected to decline to under 2x early in 2012.

Open Text has a record of steady financial performance and cash flow from operations, which is expected to continue because of its leading position within the rapidly growing enterprise content management market, the agency said.

While the company is acquisitive, S&P said it expects the company to maintain leverage of less than 2x except on a temporary basis.

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