XEROX STOCKS DOWNGRADED TO JUNK STATUS

  • 4toner4
  • ink-direct-banner-902-x-177-v-1-2-big-banner-03-23-2017
  • 161213_banner_futorag_902x177px
  • Print
  • 05 02 2016 429716a-cig-clearchoice-banner-902x177
  • mse-big-banner-new-03-17-2016-416716a-tonernews-web-banner-mse-212
  • 2toner1-2
  • clover-depot-intl-us-ca-email-signature-05-10-2017-902x1772
  • cartridgewebsite-com-big-banner-02-09-07-2016
  • banner-01-26-17b
  • futor_902x177v7-tonernew
Share

XEROX STOCKS DOWNGRADED TO JUNK STATUS

 user 2010-02-22 at 10:32:22 am Views: 77
  • #23557

    http://online.wsj.com/article/BT-CO-20100208-715624.html?mod=WSJ_latestheadlines
    XEROX STOCKS DOWNGRADED TO JUNK
    STATUS

    S&P
    Downgrades Xerox To Brink Of Junk On Acquisition

     Standard & Poor’s Ratings Services downgraded its ratings
    on Xerox Corp. (XRX) to the brink of junk territory after the company
    closed its $5.6 billion acquisition of Affiliated Computer Services Inc.
    last week.The deal increased Xerox’s debt-to-earnings ratio, although
    the ratings agency considers the acquisition “an enhancement to Xerox’s
    existing business profile.”Credit analyst Lucy Patricola noted Xerox’s
    “business is vulnerable to macroeconomic conditions, as demonstrated by
    the sharp drop in equipment sales in 2009.”

    S&P lowered its
    ratings to BBB-, one step above junk status, and removed them from watch
    for possible downgrade, where they were placed in September. The
    outlook is stable.Last month, Xerox, which helps clients copy, print and
    manage documents, reported $180 million in profit for the fourth
    quarter, up from just $1 million a year earlier. But the improvement was
    driven entirely by Xerox’s success in paring its costs.Its shares slid 1
    cent to $8.44 in after-hours trading. The stock is up 20% in the past
    year.