S&P cuts Enterprise Networks

Standard & Poor's said it lowered its long-term corporate credit rating on Enterprise Networks Holdings BV to CCC+ from B-.

The outlook is negative.

In addition, the agency lowered its issue rating on the senior secured debt issued by EN Germany Holdings BV to CCC+ from B-. The recovery rating remains unchanged at 4.

At the same time, the agency said it removed all ratings from CreditWatch, where they were placed with negative implications on Sept. 4.

S&P said the downgrade primarily reflects the agency's opinion that Enterprise Networks will continue to generate negative free cash flow in fiscal year 2013, based on expectations of continually subdued industry demand, high competitive pressure on gross margins and further significant restructuring cash outflows.

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