Moody’s cuts Barracuda, rates loan Caa2

Moody’s Investors Service said it downgraded Barracuda Networks Inc.'s ratings, including the corporate family rating to B3 from B2 and the probability of default rating to B3-PD from B2-PD.

Moody’s cited the company's recently announced debt-funded dividend as the reason for the downgrade.

Barracuda plans to fund the about $650 million distribution with an upsized first-lien term loan and new second-lien debt. Moody's assigned a Caa2 rating to the proposed second-lien debt and affirmed its first-lien debt at B2.

The outlook is stable.

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