S&P gives investment-grade rating to BMC Software

S&P also gave BMC's $300 million senior unsecured notes due 2018 a rating of "BBB," which is two notches above junk status. The rating outlook is stable.

The ratings reflect the Houston-based company's moderate leverage, stable revenue and strong cash flow generation, S&P said.

"With enhanced profitability in both of its operating segments, BMC's earnings mix is expected to continue to improve as the company leverages the faster-growing distributed systems segment and reduces its reliance on its dependable mainframe business," said S&P credit analyst Clay Ching in a statement.

Earlier this month, BMC said its fiscal fourth-quarter profit rose 55 percent, driven by licensing and professional services revenue growth.

BMC shares jumped $1.40, or 3.6 percent, to close at $40.40. Shares hit a new 52-week high of $40.87 earlier in the session.