Moody's Investors Service raised its credit outlook the network gear provider Brocade Communications Systems Inc. on Monday.
The agency cited the company's success in integrating its $3 billion acquisition of Foundry Networks, its relative stability during the recession and the liquidity it will get from a new bond offering. The agency assigned about $600 million in notes Brocade plans to issue a rating of "Ba2," two notches below investment grade.
Moody's said the company's overall credit outlook is now "Positive," up from "Stable." It also affirmed Brocade's "Ba3" rating, which is considered non-investment grade.
The company's stock was down a penny to $7.74 Monday.