S&P cuts Rocket Software

S&P said it lowered its ratings for Rocket Software Inc. and its first-lien senior secured debt to B- from B. The agency lowered the second-lien debt rating to CCC+ from B-.

“The rating action is driven by our view that Rocket could face revenue declines in 2020 inline with GDP expectations, resulting in leverage being sustained over the mid-7x area. While the company had a good third quarter and had a solid 2020 plan before Covid-19, we view the disruption from the pandemic to be a challenge for the overall software industry and expect weakness in the company's license and service revenues in 2020,” said S&P in a press release.

The outlook is stable.

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