Moody's rates Unisys notes B2

Moody's Investors Service said it assigned a B2 rating to Unisys Corp.’s new senior secured notes and downgraded the convertible senior notes to Caa1 from B3. The SGL-2 speculative grade liquidity ("SGL") rating is unchanged.

The downgrade to the convertibles reflects the new notes, which rank senior to the convertibles due to the notes’ second-lien collateral, the agency said.

Unisys intends to use the proceeds to contribute to its U.S. pension. Along with additional pension contributions Unisys plans to make using the remaining proceeds from the sale of its U.S. federal business, these payments will nearly eliminate the U.S. pension underfunding.

“The issuance of the new notes is credit positive since it should further improve Unisys' U.S. pension funding status,” Moody’s said.

The outlook remains positive.

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