Moody's: Attachmate loans B1

Moody's Investors Service said it affirmed Attachmate Group Inc.'s B2 corporate family and probability of default ratings and assigned B1 ratings to the company's proposed first lien loan revolver and term loan.

The outlook remains negative.

According to Moody's the proposed facilities along with an unrated $400 million second lien term loan will be used to finance a $584 million shareholder distribution and to refinance existing debt.

Moody's said the negative outlook reflects the increase in debt and decrease in liquidity as a result of the dividend at a time when the company is still integrating the Novell acquisition and revenues remain under pressure.

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