S&P downgrades Optiv, loans

S&P said it lowered the corporate credit rating on Optiv Inc. to B- from B.

The outlook is stable.

At the same time, the agency downgraded the issue-level rating on Optiv's senior secured first-lien term loan to B- from B. The recovery rating remains 3, indicating an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a default.

S&P also lowered the issue-level rating on the company's second-lien term loan to CCC from CCC+. The recovery rating remains 6, indicating an expectation for negligible (0%-10%; rounded estimate: 0%) recovery in the event of a payment default.

"The rating reflects our view of the company's weakened credit metrics, with current adjusted leverage in the mid-9x area as a result of budget misses due to unexpected softness amongst its top customers, and an accretive M&A deal that failed to close in the first half of the year," S&P credit analyst Minesh Shilotri said in a news release.

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