...- SUSE Linux repaid about $500 million of its total $1.3 billion first- and second-lien term loans shortly after its $5 billion IPO in May 2021. - We expect the sizable debt reduction and strong EBITDA growth will decrease SUSE Linux's adjusted leverage to about 5.0x in 2021 (4.2x excluding exceptional costs) compared with our previous forecast of 7.5x in 2021, and 6.5x in 2020. - We expect strong cash flow metrics, with free operating cash flow (FOCF) to debt sustainably higher than 15%. - Furthermore, we expect SUSE Linux will pursue a more prudent financial policy in the long term, given its target of leverage below 3.5x (company-adjusted, considering the net debt to cash EBITDA ratio) compared with 5.6x in January 2021. - We have therefore raised our issuer credit rating on SUSE S.A., the intermediate holding company of SUSE Linux, to '##-' from 'B'. - We also raised the issue rating on SUSE S.A.'s debt to '##-' from 'B', maintained the recovery rating at '3', and revised our recovery...
