EDS Suffers Financial Woes - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business & Finance

EDS Suffers Financial Woes

EDS, the second-largest IT services provider, last week issued $1.7 billion in long-term debt to raise cash. The company has been struggling to clean up its balance sheet, and its financial problems have affected jobs it bids on. "We're looking at deals that have less up-front investment," a spokesman says.

EDS's problems attracted ratings groups' attention. Moody's Investors Service dropped its rating of EDS's corporate debt to just above junk-bond status. Standard & Poor's also downgraded EDS's credit rating.

The downgrades make it more expensive to raise cash and create other headaches. EDS disclosed last week that it has to now pay its obligations to an unspecified vendor. The payout totals $227 million and is stipulated by a subscription software contract, which says EDS must fulfill financial obligations to the vendor should its credit ratings fall below certain levels.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
News
How to Create a Successful AI Program
Jessica Davis, Senior Editor, Enterprise Apps,  10/14/2020
News
Think Like a Chief Innovation Officer and Get Work Done
Joao-Pierre S. Ruth, Senior Writer,  10/13/2020
Slideshows
10 Trends Accelerating Edge Computing
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/8/2020
Register for InformationWeek Newsletters
Video
Current Issue
[Special Report] Edge Computing: An IT Platform for the New Enterprise
Edge computing is poised to make a major splash within the next generation of corporate IT architectures. Here's what you need to know!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll