S&P: Xerox on positive watch

Standard & Poor's said it placed its ratings on Xerox Corp., including the BB+ corporate credit rating, on CreditWatch with positive implications.

The CreditWatch placement reflects the company's recent announcement that it has reached an agreement in principal to acquire Global Imaging Systems Inc. for $1.5 billion in cash, the agency said, noting that the acquisition will enhance Xerox's access to the small-to-medium business market, including the potential to expand its product installations in Global's customer base and is supportive of Xerox's strategic growth objectives.

In addition, the CreditWatch placement reflects our expectation that Xerox has the ability to fund the acquisition with a combination of existing cash and short-term debt, with negligible impact on Xerox's financial profile by the end of fiscal 2007, S&P added.

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