CSC credit rating takes a hit

Standard and Poor’s has lowered Computer Sciences Corp.’s credit rating in the wake of poor fiscal 2012 results and concerns of continuing troubles with a large United Kingdom contract.

S&P lowered CSC’s rating from BBB+ to BBB, which means the credit agency believes the company has “adequate capacity to meet financial commitments but more subject to adverse economic conditions.”

Among the conditions S&P cited in its decision are a number of underperforming contracts the company has identified and “prolonged weakness” in the European economy and the U.S. federal sector.

Tops among the troubled contracts are CSC’s issues with the U.K. National Health Service contract that contributed to the company reporting a $4.2 billion loss from continuing operations, S&P said.

CSC also has announced plans to launch $1 billion cost-reduction program.

Overall, S&P is estimating that CSC will have low-to-single-digit revenue declines in fiscal 2013. Excluding the impact of the U.K. contract, the company should have margins of 10 percent, compared to historical margins of 14 percent.

About the Author

Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here


  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.