Moody's lowers Gigamon view to stable

Moody's Investors Service said it affirmed Gigamon Inc.'s ratings, including the B3 corporate family rating and revised its outlook to stable from positive.

Moody's also said it affirmed the B2 (LGD 3) rating to the first-lien debt and Caa2 (LGD 5) rating to its second-lien debt.

The outlook revision is driven by the delay in meeting leverage and cash flow targets incorporated in the positive outlook, the agency said.

The delays are driven by the expected ramp up of expenses in 2019, Moody's added.

The ratings are driven by the company's very high leverage and weak cash flow, the agency said.

The rating also reflects the very strong market position Gigamon has built in the network packet broker market with a strong suite of network visibility products for large enterprises, Moody's said.

The network packet broker market is a growing market, but evolving rapidly to address changing network architectures and growth in cloud based applications, tools and infrastructure, the agency said.

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