Moody’s lowers Aspect Software

Moody’s Investors Service said it downgraded Aspect Software, Inc.’s corporate family rating to Caa2 from B3 and probability of default to Caa2-PD from B3-PD.

Moody’s also said it downgraded the first-lien debt facilities to B3 (LGD 2) from B1 (LDG 2) and second-lien notes to Caa3 (LGD 5) from Caa2 (LGD 5).

The downgrades were driven by challenges the company is facing in offsetting declines in its legacy product lines, high debt levels and upcoming debt maturities, Moody’s said.

The outlook is negative.

Aspect’s revolving credit facility matures in February 2016 and its term loan matures in May 2016.

Though Aspect has made significant strides in offsetting declines in its legacy Signature lines, overall revenues and EBITDA continue to decline, the agency said.

Results have been exacerbated by unfavorable foreign-exchange movements and the shift from upfront license sales to spread-over-time subscription sales, Moody’s said.

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