Fitch rates DigiCert facilities BB+, BB-

Fitch Ratings said it assigned a BB- long-term issuer default rating to DigiCert Parent, Inc. and DigiCert Holdings, Inc.

The outlook is stable.

The agency also assigned a BB+/RR1 rating to the $90 million secured revolving credit facility and $1.2 billion first-lien multi-tranche secured term loan; and a BB-/RR4 rating to the $300 million second-lien secured term loan.

Proceeds will be used for the $950 million acquisition of Symantec's Website Security Service (WSS) that was announced on Aug. 2, and repayment of DigiCert's existing $325 million debt.

The actions affect $1.59 billion of total debt, including the $90 million revolving credit facility.

“Fitch expects the merged DigiCert and Symantec's website security service to have a leading position in the Certificate Authorities (CA) industry, and an even stronger position in the core Extended Validation (EV) and Organizational Validation (OV) segments,” the agency said in a news release.

“The industry is expected to grow in the high single digits in the near-term, with EV and OV growing at near 10%, and Domain Validation (DV) declining.”

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