Moody’s downgrades Sungard

Moody’s Investors Service said it downgraded Sungard AS New Holdings III, LLC’s corporate family rating to Caa2 from Caa1 and its probability of default rating to Caa2-PD from Caa1-PD.

The rating reflects the risk of higher leverage and a constrained liquidity position that could lead to distressed debt exchanges, Moody’s said.

Moody’s affirmed the B2 rating on Sungard’s $50 million senior secured first-lien term loan and $50 million senior secured first-lien delayed draw term loan.

Moody’s downgraded Sungard’s $305 million senior secured second-lien term loan to Caa3 from Caa2. The company’s $50 million asset-based revolver is unrated.

“The outlook change to negative from stable reflects Moody’s view of Sungard AS’s continuing execution risks associated with reversing continuing revenue and EBITDA declines and delivering sustainable future growth, driving debt leverage (Moody’s adjusted) lower, and reducing rising cash flow deficits,” said Moody’s in a press release.

© 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.