S&P: CommScope unaffected

Standard & Poor's said CommScope Inc.'s announced restructuring of its relationship with Furukawa Electric Co. has no impact on CommScope's rating or outlook.

S&P previously had taken into account the presence of the put option and its positive implications for credit.

S&P said by activating the put, CommScope receives 7.7 million shares of CommScope common stock, which the company will hold as treasury stock and which represents a potential future capital resource. At the same time, CommScope will no longer record equity losses from its exposure to the joint venture, which has depressed reported net income for some time but which did not affect the company's cash position.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.