S&P downgrades LTX

Standard & Poor's said it lowered its corporate credit rating on LTX Corp. to B- from B and its subordinated debt rating to CCC from CCC+ based on expectations for lower earnings and cash flow for the April 2005 quarter.

The outlook remains negative.

S&P said the downgrade also reflects increasing concerns that the company's use of cash will strain liquidity, in light of the August 2006 maturity of $150 million 4.25% convertible subordinated notes.

The ratings on LTX Corp. reflect highly volatile sales and profitability; large, near-term maturities; substantial customer concentration; and a narrow product line, S&P said. These are only partially offset by the company's cash balances and good technology.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.