S&P puts Pitney Bowes on watch

S&P said it placed the BBB- corporate credit rating on Pitney Bowes Inc. on CreditWatch with negative implications.

The CreditWatch negative placement reflects news that the company's board of directors has initiated a review of strategic alternatives to enhance shareholder value, S&P explained.

The board has not set a timetable for the process nor has it made any decisions related to any strategic alternatives at this time, the agency noted.

S&P said it believes that alternatives could include the sale of some business lines or the sale of the company.

While the agency said it does not have any specifics on alternatives under consideration, it does think it will negative rating action particularly if they involve the divestiture of significant business lines, which would reduce operating scale and business diversity.

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