S&P: Computer Associates on watch

Standard & Poor's said its BBB- corporate credit and senior unsecured ratings on Computer Associates International Inc. and A-3 commercial paper rating remain on CreditWatch with negative implications, where they were placed on Oct. 9, 2003.

Computer Associates on Monday announced the completion of its internal audit committee investigation and found that $2.2 billion of revenue was booked prematurely within fiscal 2000 and 2001, and that the company will restate certain financial data for those fiscal years.

S&P said that while the scope of the accounting improprieties was large, indicated by the size of the overall revenue adjustment between periods, the overall financial impact on Computer Associates' profit and loss statement will not affect the company's current ratings.

The investigation concluded that the adjustments will have no affect on subsequently reported financial periods, and that Computer Associates' board of directors is confident the company's current financial reporting is sound.

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