S&P: Rural/Metro unaffected

Standard & Poor's said the ratings and outlook on Rural/Metro Corp. are not affected after the company announced that it had received notices from the trustees of its senior subordinated notes and senior discount notes that the delay in filing its Dec. 31, 2006 Form 10-Q constitutes an event of default.

The delay in filing is related to an accounting adjustment that will be made to the inventory account after a review of certain accounting practices, the agency said.

It is the agency's expectation that Rural/Metro will file its 10-Q by April 23, 2007. The company also must receive approval for an amendment under its credit facility to extend the 30-day cure period (for untimely filing of financial statements) beyond March 14 or file its 10-Q by that date. If this does not occur, S&P's said it may place the ratings on CreditWatch or lower them.

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