S&P: Intergraph outlook stable

Standard & Poor's said it revised the outlook on Intergraph Corp. to stable from positive and affirmed the B+ corporate credit rating.

S&P said that while the company has demonstrated good profitability and free cash flow, in the third quarter of 2009, it opted to return some its excess cash flow to shareholders in the form of a dividend, in lieu of reducing debt from the high-3x area.

"The rating on Intergraph reflects the highly competitive and consolidating government IT services industry, a short track record at current profitability levels, and a leveraged financial profile," S&P analyst Jennifer Pepper said in a statement.

A recurring and predictable revenue stream stemming from long-term contracts and entrenched customer relationships partially offsets these factors, the agency said.

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