Moody’s shifts Sungard view to stable

Moody’s Investors Service said it changed Sungard AS’ outlook to stable from negative, affirmed its ratings and withdrew them. The agency appended an LD to Sungard’s Caa2-PD probability of default rating, indicating a limited default.

“The designation results from Moody’s view that the company’s initial issuance of a new $102 million first-lien term loan due July 2024 (unrated) and a new $298 million second-lien term loan due August 2024 (unrated) in an exchange of debt arrangement for the same amount of existing first- and second-lien debt is a distressed exchange. Immediately after incurring these new first-lien and second-lien term loans, Sungard AS made prepayments at par of $5 million and $15 million, respectively, to the new first-lien and new second-lien lenders,” Moody’s said.

The outlook change reflects Moody’s view of Sungard’s steady execution of its strategic initiatives, a slowing pace of revenue and EBITDA declines, improved liquidity to address slowly declining cash flow deficits and a strengthened maturity profile over the next two years, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.