S&P puts Flexera on watch

Standard & Poor's said it placed the B+ corporate credit rating of Flexera Software Inc. on CreditWatch with negative implications.

The CreditWatch follows the announcement that Teachers' Private Capital, the private investment arm of the Ontario Teachers' Pension Plan, will acquire a majority interest in Flexera, according to the agency.

"Although no terms have been announced, based on Flexera's relatively modest revenue and EBITDA base, we believe that the incremental debt from the transaction could potentially weaken the company's credit profile, depending on the amount of incremental debt," S&P analyst Andrew Chang said in a statement.

Adjusted debt to EBITDA was about 4.3x in March 2011.

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