Fitch rates Cadence notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Cadence Design Systems, Inc.'s $350 million senior notes offering.

The outlook is stable.

The ratings affect $933 million of total debt including the company's senior notes offering and $250 million revolving credit facility.

Proceeds will be used for general corporate purposes, including debt repayment, working capital, capital spending or acquisitions.

Fitch said that among other factors, the ratings and outlook reflect Cadence's share leadership in each of its key end markets, supported by high switching costs (resulting in subscription renewal rates of 99%) and a strong technology portfolio. Recent acquisitions, including Jasper Design Automation, Inc., have strengthened Cadence's system design strategy.

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