S&P puts Syniverse on watch

Standard & Poor’s said it placed the B+ corporate credit rating on Syniverse Holdings Inc. on CreditWatch with negative implications.

The CreditWatch placement follows the company’s weaker-than-expected performance during its fourth quarter of 2014, S&P said.

Total revenue and EBITDA declined 5.5% and 20.1%, respectively, from the same period in 2013, the agency said. As a result, adjusted leverage was in the high-5x range at year-end 2014 and could increase over the next year if the company is unable to improve operations, S&P said.

The CreditWatch review will assess Syniverse’s business strategies and its plan to improve operating performance and profitability, including cost-reduction initiatives, over the next couple of years, S&P said.

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