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Summary: Telcordia Technologies Inc.
Standard & Poors, May 2011
Abstract
The ratings on Piscataway, N.J.-based telecommunications software and service provider Telcordia Technologies Inc. reflect the company's vulnerable business risk profile, with revenue declines caused by a mature legacy wireline target market and significant customer concentration. The ratings also reflect the company's highly leveraged financial risk profile, with elevated leverage in the mid-5x area and our expectations for only minimal free operating cash flow for debt reduction. Partly tempering these risk factors are the good predictability of the company's revenue stream (a sizable percentage of revenues are recurring in nature) and its leading technology position with a significant intellectual property portfolio. Telcordia faces significant business challenges because of negative secular trends within the legacy wireline segment of the telecommunications services industry....
Companies mentioned in this report are: Telcordia Technologies Inc.
Action: Review
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
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