S&P rates Symantec loans, convertibles BBB-

S&P said it affirmed the BBB- corporate credit rating on Symantec Corp. and removed all of the ratings from CreditWatch, where they were placed June 13 with negative implications.

The outlook is negative.

S&P also said it assigned a BBB- rating to Symantec's announced $2.8 billion unsecured term loans and $1.25 billion convertible notes.

The agency also said it affirmed the BBB- rating on Symantec's existing unsecured debt.

The ratings reflect Symantec's increasing debt balance, which will reach about $7.3 billion at the close of its acquisition of Blue Coat and lead to pro forma adjusted net leverage temporarily as high as the mid-3x range, the agency said.

The contribution of Blue Coat's business is a credit positive and the company will be able to de-lever through strong free cash flow generation and use of balance sheet cash, S&P said.

However, the negative financial impact of higher leverage and acquisition integration risk outweighs the company's stronger business profile over the near term, the agency said.

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