S&P puts Cloudera on watch

S&P said it placed Cloudera Inc.’s ratings on CreditWatch with negative implications.

The CreditWatch placement follows Cloudera's Tuesday announcement it will be taken private by KKR & Co. and Clayton Dubilier & Rice LLC, the agency said.

“While the company has yet to announce its new capital structure, we believe there is a high likelihood that the private equity firms will introduce more debt and operate at a higher leverage than the current high 3x. We will continue to monitor the details surrounding Cloudera's proposed take-private transaction as well as the company's operating performance,” S&P said in a press release.

The agency said it plans to resolve the CreditWatch once it has clarity on the new capital structure post-transaction and after the company explained its operating strategy and any cost savings plan.

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