Moody's rates Adobe Systems notes Baa1

Moody's Investors Service said it assigned Baa1 unsecured debt ratings to Adobe Systems, Inc.'s proposed senior unsecured note issuance.

Proceeds will be used to replenish funds previously used to finance the acquisition of Omniture, Inc.

The outlook is stable.

The rating is driven by the exceptional market position of the company's Adobe, Flash and Creative Suite product lines, its strong cash balances and significant cash generating capabilities, Moody's said.

The company is heavily reliant on customers purchasing product upgrades as opposed to the annual recurring maintenance streams that are the hallmark of traditional enterprise software providers, the agency said.

This risk is mitigated by need of Adobe's customers to keep up with changing technology and Adobe's track record in developing compelling products, Moody's said.

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