S&P drops Unisys

Standard & Poor's said it lowered its corporate credit rating on Unisys Corp. to SD (selective default) from CC, and removed the ratings from Creditwatch, where they were placed with negative implications on July 6.

The agency said it also lowered the issue-level ratings on the company's senior unsecured notes due October 2015 and January 2016 to D from CC.

In addition, the agency said it affirmed the B rating on the company's senior unsecured notes due 2010, of which about $64.9 million is outstanding, and due 2012, of which about $68.0 million outstanding.

The rating actions follow the closing of Unisys' June 30 private offer to bondholders, S&P said, adding that all of the company's senior unsecured noteholders participated in the exchange to some degree.

"The SD rating reflects its view that the exchange of the October 2015 and January 2016 notes transaction was a distressed offer that was tantamount to default," said S&P credit analyst Martha Toll-Reed.

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