Moody’s revises Macom to negative

Moody's Investors Service said it affirmed Macom Technology Solutions Holdings, Inc.'s corporate family rating of Ba3, probability of default rating of Ba3-PD and the Ba3 ratings on its senior secured credit facilities.

The agency also affirmed the speculative grade liquidity rating of SGL-2.

The outlook was changed to negative from stable.

Moody’s said the outlook change was principally driven by its expectation that Macom’s recovery from the slowdown of Chinese communications network infrastructure spending will remain slow, weighing on the company’s revenues and margins in its Telecom segment, such that Moody's expects that Macom’s financial leverage will remain above 4 times debt to EBITDA (Moody's adjusted) and free cash flow to debt (Moody's adjusted) will remain below the double digits percent level over the next 12 to 18 months.

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