Computervision Corp, Bedford, Massachusetts emerges with enhanced value from the review by Standard & Poor’s Corp, which raised its subordinated debt rating to B-minus from triple-C-plus. The corporate credit rating is B-plus, and the outlook is positive. There is $175m of rated debt out, and the upgrade reflects ongoing improvement in operating performance, market acceptance of new products, and a more conservative financial structure. But the company’s competitive position has been impaired by its financial condition, which has seen Computervision suffer significant operating losses over the past four years, an ongoing erosion of its revenue base, and high debt levels as a result of the absurd debt-laden buyout of Prime Computer Inc. Standard & Poor’s expects software revenues to rise over the next 12 months, fuelled by new product introductions and new contract wins, and continued evidence of an improving trend could lead to an additional modest rating improvement near term.
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