S&P lowers Syniverse debt, rates new notes B

S&P said it revised the outlook on Syniverse Holdings Inc. to negative from stable and affirmed the B corporate credit rating.

The agency also said it reviewed the recovery and issue-level ratings on Syniverse that were labeled under critical observation after the agency published revised recovery ratings criteria Dec. 7.

With the criteria review complete, S&P said it lowered the secured debt rating to B from B+ and revised the recovery rating on this debt to 4 from 2.

The 4 recovery rating indicates 30% to 50% expected default recovery.

The agency also affirmed the CCC+ issue-level rating on the company's 9 1/8% senior unsecured notes due 2019. The 6 recovery rating indicates 0 to 10% expected default recovery.

S&P also said it assigned a B rating and 4 recovery rating to Syniverse Foreign Holdings Corp.'s proposed $364 million 9 1/8% senior unsecured notes due in 2022.

The higher recovery rating on this debt relative to the existing unsecured notes reflects its priority position with respect to the company's foreign subsidiaries and guarantees from the parent company and all domestic subsidiaries, the agency said.

The outlook revision reflects Syniverse's weak operating and financial results during the first nine months of 2016 compared to the prior-year period despite some sequential improvement, S&P said.

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