S&P ups Lumentum convertibles

S&P said it upgraded the rating for Lumentum Holdings Inc.’s convertible debt to BB- from B+ and removed the ratings from CreditWatch with negative implications. The agency placed them on negative watch on Dec. 18.

The upgrade follows Lumentum repaying its term loan.

“Our rating on Lumentum reflects its adjusted gross leverage in the high-3x area, the company's strong liquidity with greater than $1 billion in cash, and the solid execution on its integration of Oclaro. With a single tranche capital structure, we expect better recovery for the convertible debt,” said S&P in a press release.

The outlook is stable.

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