Moody's drops Unisys PD to Ca

Moody's Investors Service said it downgraded Unisys Corp.' probability-of-default rating to Ca from B3 following the private offer to exchange its unsecured senior notes for up to $375 million of new 12 5/8% senior secured notes due 2014.

The company has a corporate family rating of B3 and senior unsecured notes rated Caa1 (LGD4, 63%).

Ratings were placed on review for downgrade pending the completion of the debt exchange process.

The downgrade reflects the view that the debt exchange constitutes a distressed exchange tantamount to a default if completed, according to the agency.

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