S&P: RGIS on watch

Standard & Poor's said it placed its ratings, including the B+ corporate rating, on RGIS Inventory Specialists on CreditWatch with negative implications.

The agency said that this rating action follows the announcement that an affiliate of the Blackstone Group has agreed to purchase a majority equity stake in the company and Goldman, Sachs & Co. has committed to provide bank debt and mezzanine financing.

Although specific terms have not been disclosed, S&P said it believes that the transaction will most likely result in increased debt leverage and weakened cash flow protection ratios while the current ratings are based on inconsistent operating performance and a highly leveraged capital structure that limits cash flow protection.

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