Moody’s changes Avast view to positive

Moody’s Investors Service said it changed the outlook to positive from stable and affirmed Avast Holding BV’s corporate family at Ba2, as well as its probability of default rating at Ba2-PD.

Concurrently, Moody’s changed the outlooks to positive and affirmed the Ba2 instrument ratings of Sybil Software LLC’s senior secured term loan B and Avast Software BV’s senior secured term loan B tranches both due in 2023, as well as Avast Software’s senior secured revolving credit facility due in 2022.

“We have changed Avast’s outlook to positive as a reflection of the strong performance during the last year, a solid market environment and the company’s voluntary reduction of debt earlier this year. Avast benefitted from the push towards remote work since the outbreak of the coronavirus pandemic and also weathered the Jumpshot-issue in early 2020 without meaningful adverse effects on the business. We expect the company to maintain its prudent financial policy so that the capital structure will improve further going forward,” said Dirk Goedde, a Moody’s Assistant vice president and lead analyst for Avast, in a press release.

“However, the announced dividend policy constrains the free cash flow generation, and we see an inherent risk of Avast performing larger, debt-funded acquisitions,” Goedde added.

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