S&P upgrades Ciena

S&P said it upgraded the ratings for Ciena Corp. and its $700 million senior secured term loan to BB+ from BB.

The recovery rating on the loan remains 3, S&P’s expectation for meaningful recovery (50%-70%; rounded estimate: 55%) of principal in case of a payment default.

“The rating action reflects our view of Ciena’s continued improvements in its business fundamentals, market share gains over the past few years, better operating margins, and minimal leverage over the past few quarters. The company holds cash of about $843 million, as compared to its outstanding $700 million term loan,” said S&P in a press release.

The outlook is stable.

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