Moody's: Rovi view to negative

Moody's Investors Service said it affirmed Rovi Corp.'s existing ratings, including its Ba3 corporate family rating, Ba3-PD probability of default rating and the Ba2 ratings on its senior secured credit facilities.

The outlook was revised to negative reflecting Rovi's declining profitability and continuing challenges in growing revenues.

As part of the ratings action, the agency lowered Rovi's speculative grade liquidity rating to SGL-2 from SGL-1, based on the expectations that Rovi's liquidity cushion will erode moderately from its currently very robust levels over the next 12 to 18 months but the company should maintain good liquidity over this period.

Moody's said the negative outlook reflects Rovi's sustained decline in revenue and EBITDA and our expectations that a meaningful deleveraging will likely be postponed beyond 2014 given the company's continuing challenges in growing revenues and potential for further erosion in EBITDA margins.

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