Digital Equipment Corp is coming under the Moody’s Investors Service Inc microscope for possible downgrade, and the outcome will be closely watched as concerns grow over DEC’s ability to turn itself round: the agency said it was putting its Baa3 rating on DEC’s $1,400m of senior debt under review, and may also downgrade the company’s […]
Digital Equipment Corp is coming under the Moody’s Investors Service Inc microscope for possible downgrade, and the outcome will be closely watched as concerns grow over DEC’s ability to turn itself round: the agency said it was putting its Baa3 rating on DEC’s $1,400m of senior debt under review, and may also downgrade the company’s Prime-3 short-term debt, and ba2 preferred stock. The review was prompted by its growing concern that structural changes in the computer industry may undermine DEC’s efforts to stabilise its business position and stem the outflow of cash. The review will focus on the outlook for market demand for DEC’s products and services, and the revenue and profitability potential for each of its business segments, the New York-based ratings agency noted.
