The rating on Flexera Software Inc. reflects Standard&Poor's Rating Services' view that the company's "highly leveraged" financial risk profile (as defined in our criteria) and its private-equity ownership structure are likely to preclude sustained de-leveraging. We consider Flexera's business risk profile "weak" (as defined in our criteria), reflecting its narrow product focus and modest scale. Nevertheless, we expect that the company's diverse customer base and high revenue visibility will support good revenue growth and consistent free cash flow generation in the near term. With pro forma fiscal 2011 revenues of $174 million, Flexera provides application usage management software that enables software publishers and device manufacturers to install, enforce, and deploy software licenses, and enterprises to optimize software license
