Moody’s eyes Micro Focus for upgrade

Moody’s Investors Service said it placed Micro Focus International plc's B1 corporate family rating and B1-PD probability of default rating on review for upgrade. Concurrently, the agency placed the B1 ratings on the senior secured bank credit facilities borrowed at subsidiaries MA FinanceCo., LLC and Seattle Spinco, Inc. on review for upgrade. The outlook has been changed to ratings under review from negative.

The review follows the announcement that Open Text Corp. plans to acquire Micro Focus, the agency said. On Tuesday, Moody’s placed Open Text’s ratings on review for downgrade, which it said would probably be limited to a one-notch downgrade.

“The review for upgrade will consider the impact of the planned takeover by Open Text on the credit quality of Micro Focus including, but not limited to, the combined credit profile and business plan, financial policy, degree of financial integration, and details on the mix of debt in the final capital structure,” Moody’s said in a press release.

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