S&P boosts Red Hat

Standard & Poor's said it raised its corporate credit and senior unsecured ratings on Red Hat Inc. to B+ from B.

The upgrade reflects Red Hat's improved profitability, operating leverage and financial profile, S&P noted.

The outlook is revised to positive.

S&P added that the ratings reflect a narrow business profile, modest scale relative to other software companies, rapid technology evolution and still high leverage, noting that these concerns are partly offset by a barrier to entry provided by the open-source based developer certification program, above-average liquidity and positive cash flow, as well as significant growth in demand for Red Hat's Linux-based operating systems.

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