S&P upgrades Adobe Systems

S&P said it raised the corporate credit rating on Adobe Systems Inc. to A from A-.

The outlook is stable.

The agency also said it raised the rating on the company's senior unsecured debt to A from A-.

The upgrades reflect the continued strengthening of Adobe's business following its successful transition to subscription pricing for most of its software solutions, S&P said.

The agency said it expects Adobe will continue to achieve strong operating growth in 2017 and 2018 with double-digit percent revenue and EBITDA growth, the agency said.

The A rating also reflects the company's strong market position in its core markets, strong cash flow generation and significant net cash position, partly offset by its somewhat narrow product focus relative to other software providers and intense competition in digital marketing, S&P said.

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