Research Update: Brocade Communications Systems Inc. Upgraded To 'BB+' Due To Ongoing Debt Reduction Jan 12
- Language: English
- Published: January 2012
Significant installed base in core SAN segment; Moderate leverage for the rating; and Solid long-term growth drivers in infrastructure consolidation and cloud computing. Small market share and in the competitive Ethernet segment; Significant customer concentration; and Product demand highly sensitive to enterprise IT spending. The ratings on San Jose, Calif.-based Brocade Communications Systems Inc. reflect Standard & Poor's Ratings Services' expectation that the company will maintain financial policies consistent with our "intermediate" financial risk profile, as defined in our criteria. Macro headwinds are likely to mute revenue growth in fiscal 2012 but we expect consistent cash flow generation resulting in sustained adjusted leverage below the 2x range. We view Brocade's business risk profile as "weak" (as defined in our criteria),...
Companies mentioned in this report are: Brocade Communications Systems Inc.
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Research Type: Full Analysis
Brocade Communications Systems Inc.