S&P rates Riverbed loan BBB-

Standard & Poor's said it assigned its BB corporate credit rating to Riverbed Technology Inc. The outlook is stable.

At the same time, the agency said it assigned a BBB- rating to the company's $500 million senior secured term loan B due 2019. The recovery rating is 1, indicating an expectation for very high recovery of principal in the event of a payment default.

"The rating reflects Riverbed's fair business risk profile and significant financial risk profile, incorporating relatively narrow target markets, a modest revenue base and a limited track record at its current operating scale and profitability," said S&P credit analyst Katarzyna Nolan in a news release.

"Riverbed's growing addressable markets, leading market share in the wide area network optimization market and solid cash flow generation partly offset these factors."

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