Moody's may again drop Reynolds and Reynolds

Moody's Investors Service said it downgraded The Reynolds and Reynolds Co.'s senior unsecured ratings to Ba1 from Baa3 and placed the ratings on review for further possible downgrade.

At the same time, Moody's said it assigned a corporate family rating of Ba1, also placed on review for possible downgrade.

The agency noted the downgrade reflects continuing challenges the company faces in resolving the SEC accounting review that has delayed the timely filing of its September annual report and quarterly reports thereafter.

The downgrade also reflects the company's limited financial flexibility considering its moderate cash balance, the near term retirement of $100 million notes and the need to obtain additional waivers for its revolver and A/R securitization facility, the agency added.

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