Moody's: CA outlook stable

Moody's Investors Service said it revised CA, Inc.'s outlook to stable from negative and affirmed the Ba1 corporate family and probability-of-default ratings, its Ba1 (LGD4, 50%) $460 million convertible senior notes due 2009, $500 million senior notes due 2009 and $500 million senior notes due 2014 and the SGL-1 speculative-grade liquidity rating.

The agency said the change in outlook reflects the continued improvement in performance the company has demonstrated over the past several quarters and the management team's success in restructuring the business.

The Ba1 rating continues to reflect the company's leading positions across multiple enterprise management software segments, the overall strength and size of the company's customer base, moderate credit metrics and strong free cash flow generation, Moody's said.

The ratings are constrained by continued reliance on legacy mainframe technology for a substantial percentage of total revenues, competition from large, well-capitalized competitors, limited organic growth and the company's history of share buyback activity, which the agency said have been elevated in periods prior to this past fiscal year.

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