S&P cuts Quantum

Standard & Poor's said it lowered its corporate credit rating on Quantum Corp. to B+ from BB-.

At the same time, S&P said it lowered its subordinated debt rating on the company to B- from B.

The rating actions reflect reduced profitability and high financial leverage, stemming from ongoing operating challenges, S&P noted, adding that the outlook is revised to stable from negative.

S&P added the ratings on Quantum reflect weakened profitability, stemming in part from unfavorable market dynamics, resulting high levels of financial leverage.

These factors are offset in part by a solid market position in tape-based storage systems and good liquidity, the agency said.

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