Mavenir Systems Cut by Moody’s to Caa3, Outlook Negative

Mavenir Systems had its corporate family rating downgraded by Moody’s to Caa3 from Caa1.

• outlook changed to negative from stable

COMMENTARY

• “The downgrade of the CFR to Caa3 reflects the high risk of default given the company’s weak liquidity, specifically very limited cash, revolver capacity or alternate sources of capital”
• “After investing over $1.5 billion, the company’s equity sponsors have turned definitely uncommitted to providing any additional capital support, leaving no certain back-stop”
• “This was evident in the recent default when the company missed an interest payment in September”
• “The company continues to burn cash which we estimate to be ...