S&P cuts Telcordia

Standard & Poor's said it lowered its ratings on Telcordia Technologies Inc. and removed them from CreditWatch, where they were placed with negative implications Sept. 29.

The corporate credit rating was lowered to B from B+ and the rating outlook is negative, the agency said, adding that the ratings downgrade reflects weakness in revenue, EBITDA and liquidity, which is expected to continue over the near term.

S&P said it also expects a moderate increase in financial leverage, with limited prospects for debt payment in the near term coming from free cash flow.

The ratings reflect Telcordia's vulnerable business profile, with its narrow and mature addressed market and significant customer concentration, as well as its leveraged financial profile, according to the agency.

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