Private equity firm KKR is acquiring IT cybersecurity solutions provider Optiv Security, and Optiv is issuing $1.03 billion of senior secured debt to fund the acquisition. We are assigning our 'B' corporate credit rating to Optiv Inc., the holding company for Optiv Security. We are also assigning our 'B' issue-level rating, with a recovery rating of '3', to the company's proposed $750 million secured first-lien term loan. At the same time, we are assigning a 'CCC+' issue-level rating, with a recovery rating of '6', to the company's proposed $280 million secured second-lien term loan. The negative outlook reflects our view that Optiv's high leverage of about 8x, combined with risks associated with multiple projected acquisitions in 2017, could lead to
