S&P rates Unisys notes BB-

Standard & Poor's said it assigned a BB- senior unsecured rating and 3 recovery rating to Unisys Corp.'s proposed $210 million notes due 2017.

The agency also said it revised the recovery rating on the company's existing senior notes to 3 from 4 because of the redemption of all outstanding secured notes and the lower total debt amount.

S&P also said it affirmed the company's BB- corporate credit rating.

The outlook is stable.

The proceeds will be used to redeem all outstanding 12¾% notes due 2014.

The company reported constant currency revenue growth of 3% in the June 2012 quarter, improved operating profitability and the achievement of its debt reduction goal, S&P said.

The ratings reflect its moderately leveraged financial profile and consistently positive annual discretionary cash flow, which will provide sufficient cushion in the next 12 months to mitigate modest total revenue growth and potential operating performance volatility, the agency added.

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