Linux Software And Services Provider SUSE 'BB-' Rating On CreditWatch Negative On Planned Delisting

On Aug. 17, 2023, SUSE S.A.'s majority shareholder EQT announced a voluntary public purchase offer and its intention to delist SUSE from the Frankfurt stock exchange. We understand that the transaction could entail an increase in interest-bearing debt of up to €500 million, which will increase SUSE's adjusted leverage to potentially above 5.0x at year-end 2023, compared with 3.3x at year-end 2022. We are therefore placing our 'BB-' ratings on SUSE and its debt on CreditWatch with negative implications. The negative CreditWatch indicates that we could lower our ratings by up to one notch if the additional debt following the delisting and a more aggressive financial policy pushed SUSE's adjusted leverage materially and sustainably above 5x or if the additional

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