S&P cuts BMC Software, rates notes CCC+

Standard & Poor's said it lowered its corporate credit rating on BMC Software Inc. to B from B+.

The outlook is stable.

At the same time, the agency assigned a CCC+ issue-level rating to the holding company's $500 million contingent cash pay notes due 2019. The 6 recovery rating indicates an expectation for negligible recovery (0% to 10%) in the event of payment default.

S&P also lowered the issue-level ratings on the company's existing senior secured and senior unsecured debt by one notch. The recovery ratings remain the same.

"The downgrade reflects our view that the incremental debt issuance will result in a further deterioration in BMC's 'highly leveraged' financial risk profile following its LBO in September 2013," S&P credit analyst Phil Schrank said in a news release.

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