S&P rates SonicWALL loans BB-

Standard & Poor's said it assigned a B corporate credit rating to SonicWALL Inc., along with a BB- rating and a recovery rating of 1 to the senior secured facility, consisting of a $15 million revolving credit facility and a $155 million first-lien term loan. The 1 recovery rating indicates an expectation of 90% to 100% recovery in a default.

The ratings reflect the company's high leverage, narrow business profile, modest scale and significant technological obsolescence risk, S&P said.

The company's stable performance during the recent downturn, good level of contractually based recurring revenues and low-asset intensity all offset those weaknesses, the agency said.

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