S&P upgrades IKON

Standard & Poor's said it raised its long-term corporate credit and senior unsecured debt ratings on IKON Office Solutions Inc. to A+ from BB-, thereby equalizing them with the A+ long-term corporate credit rating of Ricoh Co. Ltd. (A+/stable/A-1).

The ratings on IKON were removed from CreditWatch, where they were placed with positive implications on Aug. 27 following the announcement that the company had agreed to be acquired by Ricoh for about $1.6 billion in cash. The outlook is now stable.

The agency said the alignment of IKON's ratings with those of its new parent reflects the company's strategic importance to Ricoh, and S&P expects IKON's financial integration with the rest of the Ricoh group to grow within a relatively short period.

The ratings on Ricoh reflect S&P's view that the company will gradually restore its weakened financial profile over the next three years.

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