S&P drops Unisys to CC

Standard & Poor's said it lowered the corporate credit rating on Unisys Corp. to CC from B its senior notes maturing in 2012, 2015 and 2016 to CC from B, and placed the ratings on CreditWatch with developing implications.

The agency affirmed the B rating on the company's $300 million senior notes due March 2010.

"The CreditWatch with developing implications means the rating could be raised or lowered depending upon the outcome of the exchange offer," S&P analyst Martha Toll-Reed said in a statement.

S&P said the actions follow the company's offer to exchange all series of senior unsecured notes for new senior secured notes maturing September 2014 in an amount of at least $200 million, but not to exceed $375 million.

If the company completes the exchange offer, the agency said it would raise the corporate credit rating and all affected issue ratings to B. The exchange sufficiently addresses the near-term maturity of the 2010 notes, and even in the absence of a revolving credit facility, Unisys would maintain adequate liquidity.

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