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Research Update: Convergys Corp. 'BB+' Rating Placed On CreditWatch Negative On Announced Sale Of Its Information Mgmt Business Mar 12
Standard & Poors, March 2012
Convergys announced that it has signed a definitive agreement to sell its Information Management (IM) business to NEC Corp. for $449 million in cash. We believe the transaction would weaken Convergys' business risk profile by reducing business diversity and increasing reliance on the more economically sensitive call center business, which has lower margins. We are placing our ratings, including the 'BB+' corporate credit rating, on CreditWatch with negative implications. On March 26, 2012, Standard & Poor's Ratings Services placed its ratings on Cincinnati-based Convergys Corp., including the 'BB+' corporate credit rating, on CreditWatch with negative implications. This action follows the announcement that the company has signed a definitive agreement to sell its Information Management (IM) business to NEC Corp. for...
Companies mentioned in this report are: Convergys Corp.
Action: On CreditWatch:Negative
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.