S&P: IPC Systems on watch

Standard & Poor's said it placed its B+ corporate credit rating for IPC Systems Inc. on CreditWatch with negative implications.

The CreditWatch placement follows the announcement that IPC has entered into a definitive agreement to purchase WestCom Corp., the agency said.

Despite the fact that this acquisition bolsters the company's services business and adds stability to the overall business, S&P said IPC's capacity to make additional debt-financed acquisitions was extremely limited following the recent acquisition of Positron Public Safety Systems Inc.

S&P noted that the ratings on IPC's existing senior secured bank facility were not placed on CreditWatch, as the term loans and any amounts outstanding under the revolving credit facility are expected to be refinanced as part of the transaction.

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