Moody’s downgrades Pactera

Moody's Investors Service said it downgraded Pactera Technology International Ltd.'s corporate family rating to B3 from B2.

Moody's also said it downgraded the senior secured debt rating on the notes issued by BCP Singapore VI Cayman Financing Co. Ltd. to B3 from B2. These notes are guaranteed by Pactera.

The outlook is negative.

The downgrades conclude a review of the ratings that began in August, Moody’s said.

The downgrades reflect the company’s ongoing weak operations and the uncertainty that exists about its future business and liquidity profile, the agency said.

The company continues to suffer weak operating profit margins, negative free cash flow and weak debt-servicing ability, Moody’s noted.

The agency said it is concerned about the company's performance and financial profile, which is unlikely to improve.

On the other hand, the ratings consider the company’s international IT outsourcing experience in growing its business in China and its well-diversified revenue portfolio across geographies and customers, Moody’s said.

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