S&P puts Juniper Networks on watch

Standard & Poor's said it placed its ratings on Juniper Networks Inc., including its BB long-term and B-1 short-term corporate credit ratings, on CreditWatch with negative implications.

The agency said that the action follows Juniper's announcement today that it had received a request for information from the office of the United States Attorney for the Eastern District of New York relating to the company's granting of stock options, adding that Juniper is fully cooperating with the inquiry.

While it is too early to assess the outcome of the investigations, Juniper's substantial liquidity - cash and financial assets totaled $2.0 billion at March 30, compared to $400 million rated debt - should cushion the downside risk to the rating.

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