Electronic Data Systems Corp, Plano, Texas is not finding it too hard to stay ahead of the game despite the ministrations of a host of facilities management and systems integration wannabes led by IBM Corp. Standard & Poor’s Corp is so impressed with the company’s diversified and recurring revenue base, favorable growth prospects and solid track record of profitability and cash flow that it has raised its senior unsecured rating on the company to single-A-plus from single-A. The A-1 commercial paper ratings of the company and its EDS Finance Plc are affirmed, and Standard & Poor’s has removed all ratings from CreditWatch, where they were placed on August 14. About $2,500m of total debt is affected. The removal follows approval by the board of General Motors Corp of the terms of the spin-off of the company. Saying that the ratings reflect the company’s extremely strong competitive position and financial profile, it adds that although the split-off will result in a one-time $500m dividend to the General, and up to $750m in restructuring charges, it Poor’s believes financial flexibility will not be significantly impaired.
