S&P Affirms Ratings on Verisign Inc. (VRSN); Notes 'Modest' Financial Risk Profile

Standard & Poor's Ratings Services today said it affirmed its 'BB+' corporate credit rating on VeriSign Inc. (Nasdaq: VRSN) (Verisign). The outlook is stable.

At the same time, we assigned a 'BB+' issue-level rating to Verisign's $400 million senior unsecured notes due 2025. The '3' recovery rating on these instruments indicate our expectation for meaningful recovery (50% to 70%) in the event of payment default. The recovery rating for these instruments is capped at '3' per our criteria.

"The rating reflects our view of Verisign's 'modest' financial risk profile reflecting its consistent operating performance and strong cash flow characteristics despite the additional debt, the proceeds of which we anticipate will be primarily used for shareholder returns," said Standard & Poor's credit analyst Andrew Chang.

The stable outlook reflects our expectation that the company will maintain its market position and stable operating performance while continuing to pursue a similar level of shareholder returns over the near term.

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