S&P rates Banff Parent B-, trims ratings

S&P said it assigned a B- issuer credit rating to Banff Parent Inc., the parent company of the business previously rated under the name BMC Software Inc. The firm will continue to do business as BMC Software.

The B- rating on Banff Parent is lower than S&P’s previous B rating on BMC Software, reflecting S&P’s expectation of leverage averaging over 8x through the renewal cycle.

“We are also lowering our rating on the firm's senior secured debt to B- from B and senior unsecured debt to CCC from CCC+. The recovery ratings remain 3 and 6, respectively.

The outlook is stable.

“The B- rating is based on our expectation that BMC's leverage – in spite of intra-year volatility caused by the adoption of ASC 606 – will generally average around the low-8x area under the new standard,” S&P said in a news release.

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