...- SolarWinds Holdings Inc.'s performance has held up since it announced the Sunburst breach in December 2020, which suggests that the event will have a modest impact on its business. Nonetheless, following the company's divestment of its MSP business (N-able), we expect its S&P Global Ratings-adjusted gross leverage to increase to above 6x (our current downside trigger). We believe it is unlikely that SolarWinds will use the cash proceeds from the divestment to pay down its debt over the near term. - We lowered our issuer credit rating on SolarWinds to 'B' from 'B+' and our issue-level rating on its senior secured debt to 'B' from 'B+' and removed the ratings from CreditWatch, where we placed them with negative implications on Dec. 22, 2020. - The stable outlook reflects our view that the company has managed the fallout from the Sunburst breach with minimal revenue losses and maintained the profitability of its business. Despite the increase in its leverage following the N-able divestment,...
