Fitch cuts, pulls Conduent ratings

Fitch Ratings said it downgraded Conduent Inc.'s and Conduent Business Services, LLC's long-term issuer default rating by one notch to BB- from BB with a negative outlook. Fitch also downgraded the senior secured issue ratings on debt issued by Conduent Business Services by one notch to BB/RR1 from BB+/RR1 and the senior unsecured rating to BB-/RR4 from BB/RR4. Additionally, Fitch withdrew Conduent's ratings for commercial reasons.

The downgrade and outlook reflect that while 2019 results were generally in line with Fitch's expectation at the time of the downgrade in August, the company's free cash flow deficit was worse than expected.

“Additionally, revenue declines appear to be accelerating based upon management guidance and Fitch now sees revenue down about 7% versus 5% previously. As such, we are no longer expecting revenue to stabilize over the forecast horizon as previously,” said Fitch in a press release.

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