S&P: Convergys unchanged

Standard & Poor's said its ratings and outlook on Convergys Corp. are not immediately affected by the company's announcement that it signed a definite agreement to sell its human resources management business to NorthgateArinso for $85 million in cash at closing and $15 million in cash over three years.

The company plans to use the proceeds to repay most of the outstanding balance on its $400 million revolving credit facility.

The agency said the transaction is a positive step for the credit for two reasons: the business being sold has been a distraction to company management and a drain on cash flow, and reducing the outstanding balance on the revolver will reduce the refinancing risks when this facility matures in October 2011.

However, in continuing to assess the company's credit ratings, S&P said it will remain focused on the sustainability of the ongoing turnaround at the customer management business as well as assess the company's strategic direction given the recent change of chief executive officer.

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