Business Services Industry

Consultant says EDS doing good job fielding questions after credit downgrade.

Knight Ridder/Tribune Business News, July, 2004

By Crayton Harrison, The Dallas Morning News Knight Ridder/Tribune Business News

Jul. 21--Electronic Data Systems Corp.'s potential customers have been closely examining the company's financial situation since a debt-rating agency downgraded its bonds to junk status last week, consulting firm TPI Inc. said Tuesday.

Executives of Plano-based EDS have done a good job of addressing the financial questions of prospective clients, said TPI, which advises companies on picking an outsourcing partner.

Moody's Investors Service downgraded EDS' long-term debt to junk last week, saying it was concerned about the company's free cash flow generation. EDS said it strongly disagreed with the downgrade, and the computer services company does not face...

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