S&P lowers IPC Systems, rates loans B, CCC+

Standard & Poor's said it lowered its corporate credit rating on IPC Systems Inc. to B from B+ and removed the rating from CreditWatch, where it was placed on March 28, with negative implications, following the announced acquisition of WestCom Corp.

The outlook is stable.

At the same time, S&P said it assigned its B bank loan rating and 2 recovery rating to IPC Systems's proposed $915 million first-lien senior secured bank facility.

S&P said it also assigned its CCC+ bank loan rating and 5 recovery rating to the company's proposed $315 million second-lien senior secured term loan.

The agency noted that the ratings on IPC reflect a concentrated product base and end market, along with an aggressive financial policy while these are only partly offset by a leading global market position in its addressed niche and our expectations for continued positive demand momentum over the intermediate term.

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