S&P affirms Micro Focus

S&P said it affirmed its long-term issuer credit rating on Micro Focus International plc at BB-.

The outlook is negative.

At the same time, the agency affirmed the BB- issue ratings on the senior secured bank facilities. The recovery ratings are 3, reflecting an expectation of meaningful (50%-70%, rounded estimate 60%) recovery in the event of a default.

S&P removed all the ratings from CreditWatch with negative implications, where they were placed on March 22.

“The affirmation reflects our assumption that some of the adverse working capital impact from systems-related invoicing issues may normalize in the six months to October 2018, and that there could be some ongoing improvements in the rate of revenue declines as Micro Focus strengthens its salesforce and fixes IT issues,” the agency said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.