Moody’s cuts VeriSign notes to Ba2

Moody's Investors Service said it affirmed VeriSign, Inc.'s Ba2 corporate family rating, Ba2-PD probability of default rating and SGL-1 speculative grade liquidity rating.

At the same time, the agency downgraded VeriSign's senior unsecured notes to Ba2 from Ba1 following the company's announcement that it called for redemption all of its outstanding 3.25% junior subordinated debentures due 2037 (unrated).

The outlook is stable.

Moody’s said the downgrade reflects the change in its expectation of recovery given the decreased debt cushion in the capital structure in a default scenario following the expected redemption of $1.25 billion of junior subordinated debt.

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