S&P affirms Riverdeep

Standard & Poor's said it affirmed its B+ long-term corporate credit rating on Riverdeep Group Ltd. following the company's announcement that it is to issue a further €75 million of senior notes maturing 2011, primarily to repay senior debt.

The outlook remains negative.

Riverdeep will repay $75 million of senior bank debt, and the balance raised, net of fees, will add at least $20 million to the company's liquidity. The move will also increase Riverdeep's financial resources and capacity to borrow from banks.

S&P said the ratings on Riverdeep continue to reflect the company's highly leveraged capital structure as well as the potential revenue volatility of its U.S.-focused specialist software businesses.

S&P currently rates Riverdeep Group Ltd.'s senior secured bank loan B+ and senior unsecured debt at B-.

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