Fitch lowers Unisys

Fitch Ratings said it has downgraded Unisys Corp.'s issuer default rating to RD from C following the completion of the company's exchange offer on July 28, which Fitch views as a coercive debt exchange and, therefore, a default.

Subsequently, Fitch said it has taken the following rating actions: issuer default rating to B from RD; new first- and second-lien senior secured notes issued in conjunction with the CDE rated BB/RR1 and BB-/RR2, respectively; senior unsecured notes to B-/RR5 from C/RR4; and secured credit facility rating of B-/RR1 withdrawn as the facility expired as expected and was not renewed.

The outlook is negative as Fitch noted that it believes Unisys will continue to be subject to revenue pressures, deteriorating credit protection measures and a disadvantaged competitive position due to lower financial flexibility and a significantly smaller offshore presence required to effectively compete in the commercial marketplace.

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