TEXT - S&P on Riverbed Technology Inc

Fri Dec 14, 2012 12:01pm EST

Dec 14 - Standard & Poor's Ratings Services said today that the upsizing of
San Francisco, Calf.-based application and network performance management
solutions provider Riverbed Technology Inc.'s term loan due 2019, to
$575 million from $500 million, does not affect the 'BBB-' issue-level rating or
'1' recovery rating on the loan. The company intends to use the additional debt
proceeds, instead of cash from the balance sheet, to fund the purchase price of
Opnet Technologies Inc. As a result of the upsizing, we estimate that the
company's adjusted leverage will only increase modestly, to 2.6x from 2.3x for
fiscal 2012.

Our 'BB' corporate credit rating and stable outlook on the company remain 
unchanged. The 'BB' rating reflects reflects Riverbed's "fair" business risk 
profile and "significant" financial risk profile, incorporating relatively 
narrow target markets, a modest revenue base, and a limited track record at 
its current operating scale and profitability. Riverbed's growing addressable 
markets, leading market share in the wide area network (WAN) optimization 
market, and solid cash flow generation partly offset these factors. (For the 
latest complete corporate credit rating rationale, see Standard & Poor's 
research report on Riverbed published Nov. 30, 2012.)

RELATED CRITERIA AND RESEARCH
     -- Business Risk/Financial Risk Matrix Expanded, Sept. 18, 2012
     -- Criteria Guidelines For Recovery Ratings, Aug. 10, 2009
     -- 2008 Corporate Criteria: Rating Each Issue, April 15, 2008

RATINGS LIST


Riverbed Technology Inc.
 Corporate Credit Rating       BB/Stable/--
 $575M term loan due 2019      BBB-
   Recovery Rating             1
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