Moody’s Downgrades EDS’ Debt Ratings

Electronic Data Systems Corp.’s long- and short-term debt ratings were cut by Moody’s Investors Service, which cited weak demand and contracts with troubled clients including WorldCom Inc.

The long-term rating dropped two levels to A3 from A1, and the short-term ranking fell one grade to P2, a day after downgrades by Standard & Poor’s.

The world’s second-largest computer services seller, after IBM Corp., is on review for possible further reductions, Moody’s said.

Shares of Plano, Texas-based Electronic Data rose 82 cents to $18.17 on the NYSE.