Moody's lifts Flexera view to stable

Moody's Investors Service said it affirmed Flexera Software LLC's B2 corporate family rating, B2-PD probability of default rating, B1 first-lien rating and Caa1 second-lien rating.

The outlook was revised to stable from negative.

The outlook revision reflects Flexera's solid business execution during 2018, resulting in organic growth of 12% and EBITDA margin expansion, Moody's said.

Despite the closing of three acquisitions in 2018 that were largely debt-financed, Flexera's credit metrics remain in line with the rating category due to EBITDA growth, the agency said.

Moody's said it expects continued organic growth in 2019, albeit at a somewhat moderated pace, Moody's said.

Margin expansion also is expected to continue in 2019, driven in part by cost savings actions in the company's software vendor business, the agency said.

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