Fitch rates McAfee BB-, facility BB

Fitch Ratings said it assigned an expected rating of BB/RR2 to McAfee LLC’s senior secured credit facility and an expected BB- rating to the company.

In reaching the issuer rating, Fitch said it considered McAfee’s strong profitability, with EBITDA margins in the mid-30% range, positive free cash flow profile, a leading market position supported by positive brand reputation, weaker leverage metrics relative to peers, and tailwinds in the cybersecurity segment as information technology security threats become increasingly complex.

The expected ratings depend on McAfee closing its planned IPO, with the proceeds being used to repay the $511 million on its second-lien term loan, Fitch said.

The outlook is stable.

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