S&P puts Alarm Services on negative watch

Standard & Poor's said it placed Alarm Services Group Inc.'s B corporate credit rating and B- senior secured second-lien debt ratings on CreditWatch with negative implications due to uncertainty surrounding the company's operating prospects given continued underperformance in alarm-contract acquisitions, heightened attrition rates and anticipation of a near-term assessment by Allen & Company, an independent investment bank hired to explore strategic options for the company.

Additionally, the company recently announced a management restructuring, which will result in the exit of the existing chairman and chief executive officer on May 31 and president and vice chairman of the board on May 1.

The company's new CEO, who will serve as special advisor to the board of directors until the existing CEO leaves at the end of May, is expected to spend the next 60 to 90 days assessing the business and determining the likelihood that the company will be able to meet the plans for 2006 laid out earlier this year, the agency said.

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