...Fitch Ratings assigned a `BB+' rating to Convergys' new 5.75% junior subordinated convertible debentures due 2029 issued in conjunction with the company's debt exchange that concluded on Oct. 6, 2009. Fitch also affirmed the company's existing ratings as follows: long-term issuer default rating (IDR) at `BBB¡', senior unsecured revolving credit facility at `BBB¡', senior unsecured notes at `BBB¡'; short-term IDR at `F3', and commercial paper program at `F3'. Approximately $610 million of debt is affected by Fitch's action. The Rating Outlook is Negative. Fitch's rating concerns and Negative Outlook center on Convergys' continued implementation challenges and free cash flow pressure relating to two significant Human Resources Management contracts, as well as uncertainty regarding the timing and ultimate resolution of ongoing client negotiations to restructure these contracts; continued revenue pressures expected in the second half of 2009 due primarily to lower-than-expected call volume...
|
| Company(ies): | Nalco Company, UAL Corporation, Rockwood Specialties Group, Inc., Toys R Us, Inc., Star Gas Partners, L.P., Toledo Edison Company, Convergys Corporation, JohnsonDiversey, Inc., Developers Diversified Realty Corporation, First Bancorp, Nalco Financial Holdings, Inc, Blockbuster, Inc., Cleveland Electric Illuminating Co., Hovnanian Enterprises, Inc.
|
