Fitch rates SunGard notes B-

Fitch Ratings said it assigned a B- rating with a recovery rating of RR5 to SunGard Data Systems Inc.'s proposed $500 million senior unsecured note offering.

The proceeds will be used to refinance a portion of the company's $1.6 billion 9.125% senior unsecured notes due 2013.

The company has an issuer default rating of B, along with BB- ratings with recovery ratings of RR2 on its $4.7 billion senior secured term loan due 2014 and 2016 and $829 million senior secured revolving credit facility due 2011 and 2013, B rating with a recovery rating of RR4 on its $250 million 4.875% senior notes due 2014, B- rating with a recovery rating of RR5 on its $1.6 billion 9.125% senior unsecured notes due 2013, B- rating with a recovery rating of RR5 on its $500 million 10 5/8% senior unsecured notes due 2015 and CCC with a recovery rating of RR6 on its $1 billion 10¼% senior subordinated notes due 2015.

Fitch said it believes the new notes issue could ultimately reduce leverage for the remaining company and be beneficial for bondholders.

But, plans for a spinoff of Availability Services and equity issuance are preliminary and may be delayed in part or indefinitely, the agency said.

The ratings are supported by SunGard's strong recurring revenue profile supported by longer-term contracts and significant switching costs, Fitch said.

Rating concerns include expectations that SunGard's debt levels and debt service requirements will remain significant over the intermediate term, the agency said.

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