S&P: Comverse unaffected

Standard & Poor's said the announcement by Comverse Technology Inc. that it had successfully completed an offer to exchange new zero-yield putable securities (ZYPS), in an aggregate amount of $418 million for the company's existing ZYPS would have no affect on the rating or outlook on the company.

S&P said the exchange was motivated by an accounting decision that requires contingently convertible debt to be included in fully diluted share counts.

The exchange has no affect on the company's total amount of funded debt, as the exchange was one-for-one in dollar amounts, and the new conversion method has no implications from a credit perspective, according to S&P.

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