S&P drops CommScope

Standard & Poor's said it lowered its corporate credit rating on CommScope Inc. to BB- from BB and placed the ratings on CreditWatch with negative implications.

The action reflects CommScope's definitive agreement to acquire Andrew Corp. for $2.6 billion, of which at least 90% would be in cash, the agency said, noting that the transaction is expected to close by the end of the year, pending regulatory and shareholder approvals.

CommScope will assume Andrew's existing debt, S&P said, noting that the transaction would increase the combined company's pro forma financial leverage to over 7x.

The BB- corporate credit rating reflects an anticipated best-case scenario, recognizing these potential benefits, but post-transaction ratings could be lower, depending on an assessment of those factors, according to the agency.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.