Research Update: MOSAID Technologies Inc. Rated 'B', Stable Outlook; Proposed US$155M Secured Debt Rated 'BB-' (Recovery Rating: '1') Dec 11
- Language: English
- Published: December 2011
Highly leveraged capital structure and aggressive financial policy Small scale of operations Significant customer concentration and limited product diversity Uncertainty with respect to litigation outcomes Fair near-term revenue visibility owing to contracted backlog of about 3x fiscal 2011 revenue Good patent position in the dynamic random access memory and Wi-Fi wireless markets History of favorable litigation outcomes and successful contract renewals The ratings on MOSAID Technologies Inc. are largely driven by the company's highly leveraged financial risk profile characterized by Standard & Poor's Ratings Services' pro forma adjusted debt to EBITDA in the mid-6x range based on our fiscal 2012 expectations, weak pro forma cash flow protection measures, and an aggressive financial policy given the company's leveraged capital structure and...
Companies mentioned in this report are:
- MOSAID Technologies Inc.
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.
Research Type: Full Analysis