Fitch cuts Unisys, on watch

Fitch Ratings said it has downgraded Unisys Corp.'s issuer default rating, senior bank credit facility and senior unsecured debt ratings to BB from BB+ and placed all ratings on Rating Watch Negative.

Fitch said the rating watch will be resolved by further clarity to Unisys earnings shortfall, earnings expectations for the remainder of 2005 and the company's liquidity profile.

The downgrade is a result of Unisys's announcement that earnings and revenue for the third-quarter ending Sept. 30 will be lower than expected, coupled with the continued decline in credit protection measures and financial performance and an inability to meet financial guidance, Fitch said.

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