Moody's rates Aspect loans B2, Caa1

Moody's Investors Service said it affirmed Aspect Software, Inc.'s B2 corporate family rating but revised the outlook to negative.

Moody's also assigned new ratings to debt issues related to the proposed recapitalization of the company. Moody's assigned a B2 rating to the new $725 million first-lien term loan due 2011 and a Caa1 rating to the $385 million second-lien term loan due 2012.

Ratings affirmed include the $50 million senior secured revolving facility due 2010 at B2.

The negative outlook revision is driven by the proposed dividend payment, which will result in a significant increase in EBITDA leverage from 3.8x to 5.8x. Interest coverage will narrow to less than 2x correspondingly. The recapitalization will reduce Aspect's financial flexibility in its competitive operating environment.

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