MCI Communications Corp’s proposed acquisition of SHL Systemhouse Inc will not hurt its credit standing, Standard & Poor’s Corp said. The ratings agency says the acquisition is consistent with the company’s business and investment strategy and should enhance MCI’s ability to mee t increasing complex customer needs for integration of communications and data systems. MCI ratings continue to reflect its well-established position in the US long-distance market and strong financial profile. The ratings outlook is stable, but MCI’s large investment and capital spending commitments in addition to the fact that its strategic investments are not likely to contribute meaningfully to the overall credit profile in the near term severely limit upgrade potential, the agency concluded.
