Investing.com -- IT management solutions company SolarWinds (NYSE: SWI ) Holdings Inc. has been put under CreditWatch with negative implications by S&P Global Ratings. This action is due to the firm’s announced intention to be acquired by financial sponsor Turn/River Capital for approximately $4.4 billion. The transaction is expected to be completed in the second quarter of 2025.

On March 3, 2025, S&P Global Ratings assigned a ’B’ issuer credit rating to Starlight Parent, which is doing business as SolarWinds, and offered a stable outlook. The recent CreditWatch placement on SolarWinds, however, is related to its ’B+’ issuer credit rating.

SolarWinds’ decision to go private under the financial sponsorship of Turn/River Capital is the main reason for the CreditWatch placement. The transaction, which is still subject to regulatory approvals, is predicted to close in the second quarter of 2025.

S&P Global Ratings has stated that all of SolarWinds Holding’s debt is expected to be repaid, so they have not placed the issue-level ratings of its debt on CreditWatch. Once the acquisition is finalized, the issue-level rating on SolarWinds Holding will be withdrawn.

The CreditWatch placement will be resolved once the acquisition is completed. The full credit rating rationale on Starlight Parent can be found in the research update published by S&P Global Ratings on March 3, 2025.

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