S&P affirms CSG Systems

Standard & Poor's said it affirmed its BB- corporate credit and senior secured debt ratings on CSG Systems Inc. and removed the ratings from CreditWatch.

The outlook is stable.

The CreditWatch had followed CSG's announcement that an arbitrator had awarded Comcast Corp. (BBB/stable/--) about $120 million in damages, along with future meaningful price adjustments, stemming from a contract dispute between the two companies. When CSG's ratings were placed on CreditWatch, the company's corporate credit rating was lowered to BB- from BB, reflecting expectations for lower revenue and cash flow following the ruling.

The ratings affirmation follows CSG's recent announcement that it has signed a new five-year contract with Comcast, its largest customer, mitigating concerns that Comcast may seek to terminate its relationship with CSG.

The ratings reflect the company's concentrated customer base in a highly competitive market, partially offset by CSG's recurring revenue base and moderate, but predictable, earnings and cash flow.

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