The ratings reflect Topeka, Kan.-based Protection One Alarm Monitoring Inc.'s projected insufficient liquidity and cash flows relative to its debt burden, combined with the loss of Westar as a source of external capital, the near-term expiration of its standstill agreement with Quadrangle, covenant breaches associated with change in control provisions under Protection One's $31 million senior subordinated notes issue, and the near-term expiration of interest payment grace periods on both of the company's subordinated notes issues. The outlook is negative. Protection One is a leading provider of property monitoring services, providing monitoring and maintenance of alarm systems to approximately one million customers. As of June 2004, Protection One had approximately $561 million of operating lease-adjusted debt. Protection One has received
