Moody's rates Mosaid B2

Moody's Investors Service said it assigned B2 corporate family and probability of default ratings to technology patent aggregator Mosaid Technologies Inc. in connection with the company's pending $590 million acquisition by affiliated funds of Sterling Partners.

Moody's said the ratings are driven primarily by the predictable cash flow stream generated by the company's solid portfolio of licenses for technology patents somewhat offset by the depleting nature of the patents and uncertainties surrounding license renewals and non-contracted patent values.

Because the portfolio needs to be continuously refreshed as license contracts and underlying patents expire, and given the very specialized nature of the company's business, Moody's said retention contracts have been implemented to assure continuity of key managers.

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