Moody's cuts Tech Data outlook to negative

Moody's Investors Service said it affirmed Tech Data Corp.'s Ba1 corporate family rating and changed the outlook to negative from stable.

The negative outlook reflects the company's increasing competitive pricing pressures, steady gross margin decline, continued weakness in the EMEA operations and weakened operating profitability on a year-over-year basis, the agency said. It also incorporates the expected delay in the achievement of the 1.1% EMEA operating margin target run rate as a result of EMEA underperformance and the minor effects from Tech Data's shift to more profitable business segments.

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