Moody's lowers Rocket Software

Moody's Investors Service said it downgraded Rocket Software, Inc.'s corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD.

Concurrently, Moody's downgraded the ratings of Rocket's senior secured first-lien bank credit facilities to B2 from B1 and second-lien term loan to Caa2 from Caa1.

“The downgrade actions reflect the view that though the company has made progress in stabilizing recent organic revenue declines, Rocket's leverage will increase from current levels and be sustained over our 6.5x downgrade trigger over the next 12-18 months,” said Moody’s in a press release.

The outlook is stable.

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