S&P: CommScope unaffected

Standard & Poor's Ratings said that various announcements made by CommScope Inc (BB-/stable/--) on Monday would not affect the company's ratings or outlook.

The announcements included restructuring actions to be taken in the Connectivity Solutions business, product price increases and new or updated financial performance guidance for the September and December quarters.

S&P said it expects the benefits of restructuring actions and product price increases should begin to bear results by the second quarter of 2005, offsetting pressures to profitability stemming from increased materials prices and inefficiencies in the Connectivity Solutions business.

Current financial leverage metrics provide some cushion to absorb a period of non-seasonally lower profitability, S&P said, although the stable outlook incorporates the expectation that the announced actions will help restore profitability to recent past levels.

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