New York, August 03, 2020 – Moody's Investors Service ("Moody's") assigned a Ba1 Corporate Family Rating (CFR), Ba1-PD Probability of Default Rating (PDR), and an SGL-1 speculative grade liquidity rating to Xerox Holdings Corporation (Xerox Holdings), the parent holding company of Xerox Corporation. Moody's also assigned a Ba1 rating to Xerox Holdings' proposed senior unsecured notes. The outlook is negative.
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I believe “green” means a positive upward trend and it can turn “red negative”in a heart beat
The end result is the stocks are in the tank so to speak and have been declining the last year or so
https://finance.yahoo.com/news/xerox-holdings-corporation-moodys-assigns-225507023.html
@tyb+16i9MnSo the stock being in the “green” may be due to buybacks by xerox itself? I am not sure someone please correct me. Also, what do you consider green?? Stock has dropped over 50% since covid and hasn’t recovered while the S&P 500 index has fully recovered. XRX stock is in a world of trouble.
Right now the stock is in the green. I don’t understand how that’s possible. Who is investing in Xerox right now. We have great products or should I say Fuji does. Xerox had the igen family which is very outdated still uses parts that were used in the late 80s. It is very labor intensive and expensive to maintain. Senior techs are retiring and the support is not there anymore.
“ Xerox Corp received the same rating December 2018
The rating has been now applied to Xerox Holdings”
Not exactly. Xerox is planning a $400 million offering of five-year bonds and $400 million of eight-year bonds. The ratings are a warning to potential investors on the high risk of default. Personally I can’t imagine Xerox solvent in the next 4 to 8 years. A viable turn-around plan is inconceivable considering the enormous headwinds.
Whatever anyone here says about trolls, Xerox is in massive trouble unless a real strategy to take the company forward is put in place, although it escapes me what that would look like.
In any case it is unlikely to say the least and previous strategies, such as buying ACS are hardly good examples.
Xerox is in the long decline tail of a growth curve which started 50 and more years ago, a decline which will probably end in oblivion.
Happens to many tech companies, perhaps Xerox managed to live on borrowed time for longer than many, think Kodak, DEC, Unisys, EMC, Nokia, BlackBerry etc.
Of course Xerox is no longer really a hi tech outfit now, just a me too tech company except in a few areas with zero growth and future, i.e. a few a niche print technologies of limited commercial value.
I wish all of you who still work for the smaller X but cannot see a good outcome sorry.
Xerox Corp received the same rating December 2018
The rating has been now applied to Xerox Holdings
Here’s what can make it go up or down:
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The negative outlook reflects the persistent pressures on Xerox Holdings' core copier and printing business as well as execution challenges, especially if management's operating and strategic plans include sizable restructuring charges, incremental investments, or relaxation of historical capital allocation policy. The outlook could be changed to stable if the company demonstrates progress in restoring revenues to approach pre-pandemic levels while also restoring operating margins and free cash flow generation.
Xerox Holdings' ratings could be upgraded with business execution that leads to consistent revenue growth, stable to improving operating margins, and growing free cash flow. An upgrade would also require conservative financial discipline, ensuring classes of unsecured debt at Xerox Corporation and Xerox Holdings have similar instrument ratings despite potentially asymmetric investment activities, and maintaining the asset quality of its finance operations while reducing the refinancing risk associated with finance liabilities. These results would be evidenced by achieving and maintaining adjusted operating margins in the low double-digit percentage range, adjusted total debt to EBITDA approaching 1.75x, and improving free cash flow generation.
Ratings could be downgraded if Xerox Holdings is unable to restore and stabilize revenues approaching pre-pandemic levels, or operating margins or other credit metrics weaken after mid-2021. Downward rating action could also occur if liquidity deteriorates including cash balances falling below $1 billion or revolver availability falling below $1.2 billion, adjusted debt to EBITDA exceeds 2.75x after mid-2021, or adjusted free cash flow to debt falls below 15% after mid-2021. Ratings could also be downgraded if the company incurs leverage to undertake any combination of share buybacks, dividends or acquisitions that leads to weakened credit metrics or if classes of unsecured debt at Xerox Corporation or Xerox Holdings have different instrument ratings reflecting asymmetric credit metrics