S&P: Websense loans B+, CCC+

Standard & Poor's said it assigned a B corporate credit rating to Websense Inc., along with a B+ rating with a recovery rating of 2 to its $40 million senior secured revolving credit facility and $350 million first-lien term loan.

The 2 recovery rating indicates 70% to 90% expected default recovery.

S&P also said it assigned a CCC+ rating with a 6 recovery rating to its $225 million senior secured second-lien term loan. The 6 recovery rating indicates 0% to 10% expected default recovery.

The outlook is stable.

The ratings reflect the company's weak business risk profile and highly leveraged financial risk profile, S&P said.

The company has a narrow product focus, a fragmented and highly competitive landscape in its core security software industry and an ongoing business model transition from legacy web filtering to a more comprehensive security offering, the agency said.

The company's diverse customer base, high level of recurring revenues and consistently positive free operating cash flow partially offset the negative rating factors, S&P said.

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