S&P assigns Autodesk notes BBB

Standard & Poor's said it assigned its BBB issue-level rating to Autodesk Inc.'s proposed senior unsecured notes, which will be issued in two tranches.

The rating is the same as the rating on the company's existing unsecured debt.

The BBB corporate credit rating and stable outlook are unchanged.

Proceeds will be used for general corporate purposes, including working capital, capital expenditures, stock repurchases and acquisitions and strategic transactions. A shift of principal between the maturities or a modest change in aggregate principal likely would not affect the ratings on the company or its debt.

S&P said the ratings reflect Autodesk’s good market position, about average level of recurring revenue and solid credit protection metrics. Partly offsetting these factors are a highly competitive marketplace and some exposure to macroeconomic cycles.

The agency believes that the company has adequate capacity within the rating to execute its transition to a subscription model from a traditional perpetual license model.

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