Global trading communication systems, compliance solutions, and network services provider IPC Corp.'s operating and financial performance continues to decline, resulting in forecast S&P Global Ratings-adjusted leverage of about 10x through 2019. Despite about $25 million-$35 million in total liquidity, we believe that covenant headroom will be tight over the next 12 months, which could reduce availability under the undrawn $25 million revolver. Therefore, we are lowering all ratings on IPC by one notch, including our issuer credit rating to 'CCC+' from 'B-', as we believe the capital structure may be unsustainable longer term. The negative outlook reflects our belief that we could lower the rating further if we believe a default or restructuring is likely within the next 12 months.
