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Moody's downgrades IBM on cash flow, profit concerns

Published 05/03/2017, 01:19 PM
© Reuters.  Moody's downgrades IBM on cash flow, profit concerns
IBM
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  • Moody's has downgraded its senior unsecured rating for IBM to A1, while lifting its ratings outlook to stable from a previous negative.
  • The firm points to "transformation and high level of investments which have negatively impacted IBM 's profitability and cash flow," says Moody's Richard Lane.
  • Despite a transition in its broad portfolio toward an enterprise-class cloud services and solutions company, total revenue has been flat or negative for 19 straight quarters, the firm notes.
  • Moody's expects profitability and cash flow will be flat to slightly lower this year, and then up slightly in 2018.
  • Now read: IBM's Dividends Could Be Undervalued


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