S&P affirms SafeNet

Standard & Poor's said that it removed its ratings on SafeNet Inc. from CreditWatch with positive implications and affirmed its B corporate credit rating. The outlook is stable.

At the same time, S&P said it affirmed the B+ issue-level rating and 2 recovery rating on the company's $275 million first-lien senior secured credit facility, consisting of a $25 million revolving credit facility and a $250 million first-lien term loan.

S&P said it also affirmed SafeNet's B- issue-level rating and 5 recovery rating on its $131 million second-lien senior secured credit facility.

The 2 recovery rating indicates expectations for substantial recovery of principal in the event of payment default, while the 5 recovery rating indicates expectations for modest recovery, the agency said.

"We expect the U.S. government's continuing resolution to pose less of a negative drag on SafeNet's operating performance in the second half of 2011 than in the first half," said S&P credit analyst Joseph Spence in a news release, "as sales to commercial entities continue to improve and defense-related agencies gain greater clarity on budgets."

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