S&P drops Quantum

Standard & Poor's said it lowered its corporate credit rating on Quantum Corp. to B- from B, its senior secured debt to B- from B+, and its subordinated debt rating to CCC from CCC+.

The agency said it also revised its recovery rating on the senior secured debt to 3 from 2.

The outlook is negative.

S& noted that the rating reflects the company's product concentration in legacy tape-related storage, challenges to upgrade and update its product offering, and high leverage while consistent cash flow generation and a good market position offset these factors.

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