S&P cuts Syniverse CCR, debt

Standard & Poor's said it lowered its corporate credit rating on Syniverse Holdings Inc. to B from B+.

The outlook is stable.

At the same time, the agency lowered the issue-level rating on the company's senior secured debt to B+ from BB-. The recovery rating remains 2, indicating an expectation for substantial (70%-90%, at the lower end of the range) recovery in the event of payment default.

S&P also lowered the issue-level rating on Syniverse's 9 1/8% senior notes due 2019 to CCC+ from B-. The recovery rating remains 6, which indicates an expectation for negligible (0%-10%) recovery in the event of payment default.

All ratings were removed from CreditWatch, where they were placed with negative implications on March 19.

"The downgrade reflects the company's weak operating and financial performance, which continued in the first quarter of 2015," S&P credit analyst Allyn Arden said in a news release.

"As a result, we expect that leverage, which was about 7x (including one-time integration and restructuring expenses) in 2014, will remain elevated over the next couple of years due to lower levels of EBITDA."

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