S&P Cuts Ciena Credit Rating

NEW YORK -- Standard & Poor's Ratings Services today lowered the corporate credit rating on optical telecommunications systems and equipment provider, Ciena Corp., to single-'B' from single-'B'-plus, reflecting the company's dramatic decline in sales, and expectations that business conditions will remain weak over the intermediate term. Ciena, based in Linthicum, Md., had about $990 million in total debt outstanding as of July 31, 2002. The outlook remains negative."The ratings continue to reflect the company's narrow business position, substantial leverage, and the risks of continuing technology evolution offset by the company's good financial flexibility," said Standard & Poor's credit analyst Bruce Hyman.Although Ciena has sufficient financial assets to meet its operating requirements over the intermediate term, business prospects are highly uncertain.Ciena Corp.Standard & Poor’s