Moody's upgrades VeriSign

Moody's Investors Service said it upgraded VeriSign, Inc.'s senior unsecured ratings to Baa3 from Ba1. Simultaneously, Moody's withdrew the company's Ba1 corporate family rating, the Ba1-PD probability of default rating and the SGL-1 speculate grade liquidity rating following the company's upgrade to Baa3 as per the agency's practice for corporates with investment-grade ratings.

"Though Verisign has not committed publicly to a specific leverage target, it has maintained conservative credit metrics and excellent liquidity,” said Oleg Markin, a Moody's assistant vice president, in a press release.

"The Baa3 rating incorporates our view that the company's financial policy, including future share repurchases, management of upcoming debt maturities, or other shareholder-friendly activities, will demonstrate a strong commitment to the investment-grade rating, specifically maintaining debt-to-EBITDA below 3x," added Markin.

The outlook is stable.

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