Having held out for as long as possible as the last of the ratings agencies to maintain IBM Corp’s coveted triple-A debt rating, Standard & Poor’s Corp has savaged the company by slashing its rating three notches in one jump, to double-A-minus and for good measure saying that the IBM ratings outlook remains negative. The credit rating is a virility symbol, but the move will also tend to mean that IBM will have to pay more to borrow money, which makes it even more likely that the dividend will have to be slashed, because whatever IBM now pays out to its shareholders will be uncovered. Details of the cut – page five.
