S&P raises Avast

S&P said it upgraded Avast Holding BV and its issue credit ratings to BB+ from BB. The 3 recovery rating is unchanged.

In explaining the upgrade, S&P noted Avast used balance sheet cash to prepay $200 million of its $1.03 billion term loans during the first nine months of 2020 because of its strong free cash flow generation and given the absence of immediate acquisition targets.

“As a result, we now expect S&P Global Ratings-adjusted leverage to fall sustainably below 2x in 2020, based on Avast's proven track record of debt prepayments and low likelihood of transformative acquisitions,” S&P said in a press release.

The outlook is stable.

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