Fitch downgrades Micro Focus

Fitch Ratings said it downgraded the long-term issuer default ratings for Micro Focus International plc to BB- from BB. Fitch also downgraded the IDRs of MA FinanceCo LLC and Seattle Spinco, Inc. to BB- from BB, and lowered the senior secured debt rating to BB/RR1 from BB+/RR1 for their respective first-lien credit facilities. The outlook remains stable.

“The rating actions reflect Fitch's view that the significant challenges faced by Micro Focus following the transformative acquisition of the Hewlett Packard Enterprise carve-out in 2017 will result in operating metrics that exceed our negative sensitivity thresholds over the ratings horizon,” Fitch said in a press release.

The company has grappled with seemingly reoccurring struggles regarding integration and go-to-market strategies, despite a strong track record in cost reduction and synergy execution following past mergers and acquisitions.

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