Apple Computer Inc has taken a hit from Moody’s Investors Service Inc, which has downgraded its senior unsecured debt to B1 from Ba2, saying the action was based on its expectation that Apple’s sales, cash flows, liquidity and debtholder protection measurements would be under significant pressure for the next 12 to 18 months, noting that the company has been a significant net user of cash in the last six months. It expects this to continue for the next several quarters and reckons Apple is likely to require additional financing to fund anticipated near-term cash outflows and meet short-term debt maturities. Moody’s also noted that Apple does not have a large, multi-year revolving credit facility to provide additional insurance for potential future events, all of which, it said, could restrict Apple’s financial flexibility.
