S&P lowers GXS ratings

Standard & Poor's said it lowered its corporate credit rating on GXS Corp. to B from BB-, lowered its senior secured bank loan rating to B+ from BB, and cut its ratings on GXS' second-priority senior secured notes and senior subordinated notes to CCC+ from B.

The outlook is negative.

S&P said the downgrade reflects expectations of weaker profitability within GXS' core product line as the company faces pricing pressures stemming from the emergence of alternative technologies and an intensely competitive marketplace.

The agency added the ratings reflect GXS' narrow business profile, a highly competitive marketplace with rapid technology evolution, and high financial leverage. These are only partially offset by recurring revenue streams and adequate near-term liquidity.

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