10:45 AM EDT, 05/08/2024 (MT Newswires) -- S&P Global Ratings on Wednesday revised the outlook on Open Text ( OTEX ) to "stable" from "negative."

The rating agency also affirmed the "BB+" issuer credit rating on the company.

The agency raised the issue-level rating on the unsecured debt to "BB" from "BB-" and revised the recovery rating to "5" from "6," given improved recovery prospects for lenders following the secured debt repayment.

The stable outlook reflects the expectation that with its recent deleveraging and updated capital allocation policy, Open Text ( OTEX ) will maintain S&P Global Ratings' adjusted debt leverage close to 3x for the next 18 months.

The outlook revision follows the debt repayment of $2 billion by the company.

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