S&P lowers Riverbed

S&P said it lowered the issuer credit rating on Riverbed Parent Inc. to B-, along with the ratings on its first-lien credit facility to B- and senior unsecured notes to CCC.

The agency also said it revised the recovery rating on the first-lien credit facility to 3 from 2.

Riverbed Parent's operating performance in fiscal year 2018 was significantly weaker than anticipated due to sharp declines in revenues in the back half of 2018 and margin erosion from decreased operating leverage and restructuring costs, resulting in debt leverage of about 10x.

The agency said it revised the assessment of the company's business risk profile to weak from fair due to accelerating SD-WAN adoption trends and Riverbed's slow entrance into this highly competitive market increases.

S&P said it expects the company's weak credit measures will expect Riverbed to sustain over the next 12 months.

These downgrades stem from Riverbed's very weak operating performance in the back half of 2018 due to sharp declines in revenues and margin erosion from decreased operating leverage and restructuring costs, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.