On December 4, 2020, Moody's Investors Service downgraded its corporate family rating on Riverbed Technology, Inc. to Caa1 from B3, its probability of default rating to Caa3-PD from B3-PD and its Senior Unsecured Regular Bond/Debenture rating to Caa3 from Caa2. The downgrades are driven by the debt restructuring proposed by the Company's owners, Thoma Bravo and Teachers' Private Capital, ongoing challenges Riverbed has in stabilizing revenues, the very large debt burden and upcoming April 2022 first lien debt maturities. The proposed restructuring, if completed would lead to a discounted recovery on the Company's debt, according to the ratings agency.

Moreover, Riverbed's rating is driven by the high probability of a near-term default and the very high financial leverage, weak free cash flow and the challenges the Company has reversing product declines as the WAN Optimization industry goes through significant changes.

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