Fitch places Convergys on rating watch

Fitch Ratings on Tuesday placed Convergys Corp. on a negative rating watch, citing the outsourcing company's decision to consider separating its information management business into its own publicly traded company.

The ratings firm said it expects Convergys will have to renegotiate the terms of a $400 million credit facility and redeem senior notes due next year before it can complete any spin-off of its business units.

Cincinnati-based Convergys offers call-center, billing and employee care outsourcing.

Earlier Tuesday, the company said its board of directors and senior management team are considering separating its business divisions in a bid to boost each unit's competitive position.

The company said it expects to make a decision in the fourth quarter.

Fitch said it expects the resolution of its rating outlook will follow the conclusion of Convergys' review.