Verint Systems (VRNT) Places on CreditWatch Positive - S&P

Standard & Poor's Ratings Services said it placed its 'BB-' corporate credit rating on Melville, N.Y.-based Verint Systems Inc. (Nasdaq: VRNT) on CreditWatch with positive implications. We also placed the issue ratings on its debt on CreditWatch positive.

"We expect to raise the ratings following the close of the transaction and are likely to revise the company's financial risk profile to 'intermediate' from 'significant' reflecting reduced leverage," said Standard .

Our assessment of Verint's "fair" business risk profile reflects the company's improved business mix and broader product mix, aided by the early 2014 KANA Software and UTX acquisitions, as well as a predictable and growing revenue base stemming from high renewal rates. We adjust our 'bb+' anchor rating down by one notch reflecting the company's narrow business line in a highly competitive sector and the integration risks following its two recent acquisitions.

We will monitor the progress of the proposed transactions, including the equity sale. If they are successful as outlined, we expect to raise the rating reflecting the lower leverage and our expectation that the company will continue to reduce debt modestly with no further significant acquisitions and with integration of the recent ones.

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