Moody's lowers IPC

Moody's Investors Service said it downgraded IPC Systems, Inc.'s corporate family rating to B3 from B2, its probability-of-default rating to Caa1 from B2 and $315 million second lien secured credit facility due 2015 to Caa2 (LGD5, 74%) from Caa1 (LGD5, 89%).

The outlook is negative.

The downgrades were based on the significantly reduced revenue and cash flow levels generated by the company and the expectations that it will likely be well into 2010 or later that revenues and cash flow recover, according to the agency.

The downgrade also incorporates the challenges the company will face in de-leveraging and the likelihood that the company will have to address the capital structure, Moody's said.

The B3 corporate family rating is largely driven by the company's high leverage, minimal free cash flow and limited ability to de-lever, the agency said.

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