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TEXT-S&P rates Sungard Data Systems proposed notes 'B-'
October 18, 2012 / 4:30 PM / 5 years ago

TEXT-S&P rates Sungard Data Systems proposed notes 'B-'

Oct 18 - Standard & Poor's Ratings Services said today that it assigned its
'B-' issue level rating (two notches below the 'B+' corporate credit rating on
the company) and '6' recovery rating to SunGard Data Systems' proposed offer of
$500 million of subordinated notes due 2019. The '6' recovery rating indicates
our expectation of negligible (0% to 10%) recovery in the event of payment
default. The company will use the proceeds to repay the existing 10.25% senior
subordinated notes due 2015, which they expect to tender for. Our corporate
credit rating, outlook, and individual issue level ratings are unchanged by the
proposed transaction.

Our ratings on SunGard reflect our expectation that the company's 
"satisfactory" business risk profile and significant base of recurring 
revenues will continue to support its "highly leveraged" financial risk 
profile. The ratings also reflect SunGard's healthy cash flow generation and 
strong position in the fragmented market for investment-support processing 
software. SunGard's revenue and earnings predictability benefit from high 
contractually recurring revenues, high customer switching costs, and 
defensible market positions. We expect moderate acquisition activity to 
enhance organic growth opportunities and product portfolio diversity. Midyear 
leverage of 5.6x is down from year-end levels of 6.7x, largely because of the 
repayment of debt with the proceeds of the sale of its Higher Education 
business. (For the latest corporate credit rating rationale, see Standard & 
Poor's summary analysis on SDS published on Aug. 23, 2012, on RatingsDirect).


SunGard Data Systems Inc.
 Corporate Credit Rating              B+/Stable/--

New Ratings

SunGard Data Systems Inc.
 $500 mil subordinated nts due 2019   B-
   Recovery Rating                    6

Complete ratings information is available to subscribers of RatingsDirect on 
the Global Credit Portal at All ratings affected 
by this rating action can be found on Standard & Poor's public Web site at Use the Ratings search box located in the left 

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