Moody's boosts Nuance Communications

Moody's Investors Service said it upgraded Nuance Communications, Inc. corporate family rating to Ba3 from B1, probability of default to Ba3 from B1, along with the rating on its $75 million senior secured revolving credit facility due 2012 to Ba2, LGD3 (34%) from Ba3, LGD3 (35%) and the rating on its $649 million senior secured term loan facilities due 2013 to Ba2, LGD3 (34%) from Ba3, LGD3 (35%).

The outlook is stable.

The upgrade was driven by the resilience that the business demonstrated through the downturn and improving free cash flow metrics, Moody's said.

The ratings reflect the company's leading positions within the voice recognition industry, strong growth profile of the industry and strong cash flow generating capabilities, the agency said.

The ratings remain tempered by the company's acquisition appetite as it attempts to further build out a strong portfolio of speech recognition applications and services, Moody's said.

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