S&P assigns Stratus, notes B-

Standard & Poor's said it assigned its B- corporate credit rating to Stratus Technologies Inc.

The outlook is stable.

At the same time, the agency said it assigned Stratus' proposed $215 million senior secured notes a B- rating, with a recovery rating of 3.

The company will use the note proceeds to refinance existing debt and pay related fees and expenses, the agency said, added that the parent and Stratus will also be amending its second-lien notes amounting to about $77 million, which are not rated.

"The rating reflects Stratus' niche position in a highly competitive global server market, challenging prospects for near-term revenue growth, and a highly leveraged financial profile," said S&P credit analyst Martha Toll-Reed.

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