Hacking scandal sends SolarWinds Loan spiralling

摘要

IT services provider SOLARWINDS' dollar-denominated term loan has dropped in secondary trading on news that the company's security apparatus was breached by foreign hackers, according to two sources monitoring the debt. SolarWinds' loan due in 2024 was quoted at 96 to 97 cents on the dollar last Tuesday, down from 99.5 to 100.5 cents on December 10. Hackers from Russia tapped into SolarWinds' software updates in order to breach the security of multiple US government agencies, Reuters reported on Sunday. News of a security breach has investors concerned that SolarWinds could suffer from reputational damage, high legal costs and a potential loss of customers, according to one portfolio manager. On Monday, Moody's said it had placed all SolarWinds' ratings on review for a downgrade. The company's B1 corporate and first-lien ratings are under review due to the reports that a cyberattack left SolarWinds security monitoring products vulnerable to illegal breaches, Moody's said.