S&P lowers Flexera, rates loans B, CCC+

Standard & Poor's said it lowered the corporate credit rating to B from B+ on Flexera Software LLC.

The agency also said it assigned a B rating with a 3recovery rating to the company's proposed $345 million senior secured first-lien term loan due 2020 and $25 million revolving credit facility due 2019. The 3 recovery rating indicates 50% to 70% expected default recovery.

S&P also said it assigned a CCC+ rating with a 6 recovery rating to the proposed $125 million second-lien term loan due 2021. The 6 recovery rating indicates 0 to 10% expected default recovery.

The outlook is stable.

The downgrade reflects a revision of Flexera's financial risk profile to highly leveraged from aggressive after the increase in leverage stemming from the proposed new credit facilities, S&P said. These credit facilities will be used to pay a dividend to its shareholders and refinance existing debt, the agency said.

The ratings also consider the company's weak business risk profile, resulting from its narrow product focus and competitive operating environment, S&P said.

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