S&P: Telx on positive watch

Standard & Poor’s said it placed Telx Group Inc.’s B- corporate credit rating on CreditWatch with positive implications.

The CreditWatch placement follows news that Telx entered into a definitive agreement to be acquired by Digital Realty in a transaction valued at about $1.89 billion, S&P said.

The agency said it expects all existing debt at Telx to be repaid upon the completion of the transaction.

S&P said it will resolve the CreditWatch when the transaction closes.

The agency said it expects to raise the ratings following the close of the transaction, reflecting a view that the company’s credit quality will be aligned with that of Digital Realty.

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