Moody's lowers RSA

Moody's Investors Service said it downgraded Redstone Buyer LLC's (RSA Security) ratings including its corporate family rating to Caa1 from B3, its first-lien debt ratings to B3 from B2 and its second-lien debt to Caa3 from Caa2.

“The downgrade was driven by continuing challenges the company faces separating from Dell, restructuring operations and standing its business units up as separate entities. Although the company is making progress through the separation and restructuring process, disruptions have been far greater and cash flow, liquidity and overall performance significantly weaker than original expectations. The company has relied on asset sales and revolver draws to effectively fund cash shortfalls,” Moody’s said in a press release.

The outlook is stable.

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