S&P boosts IPS notes

Standard & Poor's said it raised its issue-level rating on IPS Corp.'s senior subordinated notes due 2014 to B-, one notch lower than the corporate credit rating, from CCC+ and revised the recovery rating on these notes to five from 6.

These actions follow IPS' (B/negative) repayment of $50 million of its senior subordinated notes and a $10 million prepayment on the senior secured term loan with a combination of cash and preferred equity, the agency added.

The revised ratings indicate its expectation of modest recovery in the event of a payment default, S&P said.

The senior secured bank facilities are rated BB- with a recovery rating of 1, which indicates its expectation of very high recovery in the event of a payment default, the agency added.

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