Fitch downgrades RSA Security

Fitch Ratings said it downgraded the long-term issuer default ratings to B- from B of Redstone Buyer LLC, Redstone Holdco 2 LP, Redstone Intermediate (Archer) Holdco LLC, Redstone Intermediate (FRI) Holdco LLC, Redstone Intermediate (NetWitness) Holdco LLC, Redstone Intermediate (SecurID) Holdco LLC, and Redstone Parent LP.

These entities collectively operate as RSA Security, LLC. Fitch also lowered the first-lien senior secured credit facility to B/RR3 from BB-/RR2 and second-lien senior secured credit facility to CCC/RR6 from CCC+/RR6.

“The downgrades reflect the operational underperformance since the separation from Dell relative to previous expectations largely due to SecurID product. The separation also presented significant operational challenges. As of 4Q FY2022, the company has demonstrated stabilization of revenue trends as total revenue regained Q-Q and Y-Y growth, suggesting normalization of operations. In addition, the company has mostly completed its transition to be operationally independent from Dell,” Fitch said in a press release.

The outlook is stable.

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