S&P puts Datapipe on positive watch

S&P said it placed the B corporate credit rating on Datapipe Inc. on CreditWatch with positive implications.

The positive watch placement follows news that Datapipe has entered into a definitive agreement to be acquired by Rackspace Hosting Inc., which is rated two notches higher at BB-.

While terms of financing have yet to be disclosed, the agency said it needs to assess the degree of execution risk and potential synergies.

The CreditWatch listing reflects the potential for up to a two-notch upgrade before withdrawal of all the ratings on Datapipe, S&P said.

The withdrawal would follow close of the transaction, assuming all debt is repaid at Datapipe, the agency said.

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