CreditSights upgraded Symantec Corp.’s bonds to outperform from market perform Friday, after spreads blew out following the company’s disclosure of an internal investigation by its audit committee. The research firm had said earlier it would look to add exposure if spreads were to respond to the news, which sent Symantec’s shares down 34%. “Symantec’s 2025s have widened by about 55 basis points since last night and are now yielding 5.5%, which is similar to Seagate and the BB index i.e. wider than most crossover tech credits,” analyst Jordan Chalfin wrote in a commentary. Crossover credits are those that carry both investment grade and high-yield, or “junk,” credit ratings. Chalfin said his rating is “not for the risk-averse, as we have very limited information on the internal investigation.” Symantec made the disclosure in an earnings release, that also offered disappointing guidance. “We note that other companies have also recently disclosed internal investigations by their audit committees including FLEX and PPG,” he wrote. He reiterated that Symantec has been delevering and plans more debt reduction in fiscal 2019. Shares have fallen 38% in the last 12 months, while the S&P 500 has gained 14%.
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