On Nov. 26, 2008, Standard&Poor's Ratings Services lowered its corporate credit rating on Lawrence, Kan.-based Protection One Alarm Monitoring Inc. (PONE) to 'B' from 'B+', due to continued high leverage since its April 2007 acquisition of Integrated Alarm Services Group (IASG). The outlook is stable. At the same time we lowered PONE's first–lien debt rating to 'BB-' from 'BB', and its second-lien debt rating to 'B' from 'B+'. The ratings reflect PONE's highly leveraged financial profile and second-tier position in the highly competitive and fragmented U.S. security alarm monitoring industry. These factors are further compounded by a weak economic environment. These are partly offset by a largely recurring revenue base and good liquidity. PONE is a provider of
