Global trading communication systems, compliance solutions, and network services provider IPC Corp.'s announced a proposal to repurchase the existing second-lien indebtedness with a new first-lien last-lien out (FLLO) facility or a new 1.5-lien-facility. We believe that second-lien lenders could receive less than the original par amount, depending on participation levels, which would result in us assessing the repurchase as tantamount to default. We are lowering our issuer credit rating on IPC to 'CC' from 'CCC+'. We are also lowering our issue-level rating on IPC's second-lien debt to 'CC' from 'CCC'. We are placing the issuer credit rating and second-lien issue-level ratings on IPC Corp. on CreditWatch with negative implications. The first-lien issue-level rating is unchanged because it is not subject
