Moody's rates Serena

Moody's Investors Service said it assigned first-time long-term ratings to Serena Software, Inc. (corporate family rating of B2).

Moody's also said it assigned a speculative-grade liquidity rating of SGL-2.

Assigned ratings include a B1 rating for the company's $75 million senior secured revolving credit facility due 2012, B1 rating for $375 million senior secured term loan B due 2013 and Caa1 rating for $225 million senior subordinated notes due 2016.

The agency said the B2 corporate family rating reflects Serena's substantial pro forma financial leverage and thin fixed-charge coverage particularly given the company's small size, weak organic revenue growth relative to the industry and rapid growth from the debt-financed acquisition of Merant, which more than doubled the company's revenues.

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