Moody's affirms CompuCom

Moody's Investors Service said it affirmed CompuCom Systems, Inc.'s B2 corporate family and probability of default ratings, Ba2 (LGD2, 10%) $170 million senior secured term loan B due 2014 rating and B3 (LGD4, 67%) $285 million senior subordinated notes due 2015 rating.

The outlook is stable.

The affirmation of the corporate family rating reflects Moody's view that CompuCom's revenue and profitability should rebound strongly over the next 12-to-18 months. Moody's expects CompuCom's free cash flow to benefit from its high operating leverage, lower cost structure and declining spending, the agency said.

The rating is constrained by high financial risks, the company's small scale and its highly variable operating cost structure, Moody's said.

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