Moody’s lowers BMC unsecured notes

Moody's Investors Service said it affirmed BMC Software Finance, Inc.'s B3 corporate family rating but downgraded its and its affiliates existing unsecured notes to Caa2 from Caa1.

The agency also affirmed secured debt ratings.

The company is raising new secured and unsecured debt to refinance its parent company's PIK toggle notes (about $604 million outstanding) Moody’s said the downgrade in the unsecured ratings reflects the larger proportion of operating company unsecured debt in the capital structure. The parent company debt previously absorbed a significant proportion of losses in a default scenario.

The outlook remains stable.

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