S&P: Riverbed view to negative

S&P said it affirmed the B corporate credit rating on Riverbed Parent Inc. and revised its outlook to negative from stable.

The agency also said it affirmed the existing issue level ratings of B+ on the first-lien credit facility based on a 2 recovery, which indicates 70% to 90% expected default recovery, and CCC+ on the senior unsecured notes based with a 6 recovery rating, indicating 0 to 10% expected default recovery.

The outlook revision is based on an expectation that recent weakness in Riverbed's operating performance, which has caused leverage to increase to the low-7x range, will continue into the second half of 2017, S&P said.

The agency said it expects that Riverbed's revenues will recover later in 2017. But the timing and magnitude of the recovery remains less certain, S&P said.

The outlook is negative, reflecting recent weakness in product revenue, which has caused leverage to rise to the low-7x range, the agency said.

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