Moody’s changes Avast to negative

Moody's Investors Service said it changed the outlook on Avast Holding BV and subsidiary Avast Software to negative from stable and affirmed Avast Holding’s corporate family rating at Ba3, its probability of default rating at Ba3-PD and Avast Software’s senior secured credit facility at Ba3.

The outlook change follows the launch of $105 million of incremental term loans to fund the acquisition of Piriform and reflects Moody's expectation that the conditions for a stable outlook will not be met by the end of 2017. The agency forecasts that Moody's-adjusted leverage will remain above 4.0 times instead of declining toward 3.5 times.

In addition, the additional debt raise following the acquisition of Piriform demonstrates a more aggressive financial policy, in Moody’s view.

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