Risk-to-Price Commentary: Fiserv Inc. And International Business Machines Corp. Jan 11
- ID: 1784304
- January 2011
- Region: Global
- Standard & Poors
International Business Machines Corp. (IBM) reported its eighth consecutive year of double-digit earnings growth Tuesday thanks to an uptick in service contract signings, portending greater future revenue. It also said its services backlog in the fourth quarter rose by $5 billion to $142 billion. The news cheered investors, who bid up IBM shares by 2.7% in Wednesday intraday trading. An analyst quoted by Reuters said the report indicated that customers are confident enough in the economic recovery to sign multiyear contracts. IBM also issued the third-highest-scoring bond in our recent Risk-to-Price (R2P) screen of North American information technology (IT) services companies. Its $750 million 8.375% note due Nov. 1, 2019, scored 131.1, which placed it in the first quartile and...
Companies mentioned in this report are:
- Computer Sciences Corp.
- International Business Machines Corp.
- Fiserv Inc.
- Western Union Co. (The)
- Broadridge Financial Solutions Inc.
- CoreLogic Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues. SHOW LESS READ MORE >