TECHNOLOGY - Jan. 15, 1993
From Times Staff and Wire Reports
S&P; Downgrades IBM Debt: Standard & Poor’s Corp. lowered its opinion of International Business Machines Corp.’s debt, dropping the computer maker from the top grade, AAA, to AA-minus. S&P; was 10 months behind the other large credit rater, Moody’s Investor Service, in downgrading IBM. Both ratings leave IBM among the highest-rated companies, but they show uncertainty about the company’s outlook. S&P; said its ratings reflect IBM’s lower-than-expected results and a steep drop in demand for mainframe computers in December. S&P; said that although some of IBM’s other product lines are growing, they aren’t as profitable as mainframes. S&P;’s rating affects about $19 billion worth of debt.
