Fitch: Computer Sciences outlook now positive

Fitch Ratings said it has affirmed Computer Sciences Corp.'s issuer default rating at BBB and revised the outlook to positive from stable.

Furthermore, Fitch said it has withdrawn the short-term issuer default rating and commercial paper rating of F3.

The revision in the outlook to positive reflects Computer Sciences' strengthened free cash flow and materially improved cash flow metrics, the agency noted.

Fitch added that it estimates FCF-to-total adjusted debt increased to nearly 15% in the latest 12 months ended Dec. 27, compared with 3.7% in fiscal 2013, excluding a $500 million discretionary pension contribution in the current period and a one-time cash receipt of $126 million from the U.K.'s National Health Service in the year-ago period.

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