Moody's: Rovi unchanged

Moody's Investors Service said that Rovi Corp.'s weaker-than-expected cash flow generation for 2012 and the resultant delay in achieving previously committed deleveraging target of less than 4x are credit negative and leave very little margin for execution missteps in the current Ba3 corporate family rating.

Rovi announced on July 17 that it expects to generate lower revenue and earnings in 2012.

However, the agency said, downward revision of revenues and earnings for 2012 does not impact the ratings at the present time. Rovi's robust liquidity provides the cushion to absorb the temporary impact from execution challenges and Moody's said it expects the company's revenue should return to mid-single digit growth rates in 2013.

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