Moody's rates IPC credit facility Ba3

Moody's Investors Service said it has assigned a Ba3 rating to IPC Acquisition Corp.'s $80 million amended and restated bank credit facility and confirmed all other ratings of the company.

The ratings outlook remains stable.

Moody's said the ratings reflect the dependence of the company upon trading floor turret sales, the concentration of its core customer base within the consolidating financial services industry, the threat of competitive pressure and an operating performance that has stalled as a result of the current economic downturn.

The ratings also are indicative of IPC's highly leveraged financial profile (four times last-12-month EBITDA at the end of June).

Moody's said IPC's ratings are supported by its strong market share, the reputation of its highly customized product offerings lines, the relative constancy of its management team through a number of ownership changes, and the company's record of debt reduction.

At the end of June 2003, IPC recorded liquidity of $32 million, comprising $21 million in cash and $11 million available under its revolving credit facility. Moody's said it considers this level of liquidity to be relatively tight, in light of the company's modest free cash flow generation. However concerns over this tight liquidity are mitigated by the absence of any significant near-term debt maturities.

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