Fitch cuts Xerox to BBB-

Fitch Ratings said it downgraded the ratings for Xerox Corp., including the long-term issuer default rating, to BBB- from BBB following the company's announcement it will separate into two publicly traded companies.

Fitch maintains the Rating Watch Negative pending further details around the ultimate corporate and capital structure of the remaining company (Remainco).

The actions affect $9.4 billion of total debt including the undrawn $2 billion revolving credit facility.

The proposed separation effectively unwinds the 2010 acquisition of ACS, separating the business process outsourcing businesses associated with the ACS deal from the legacy Xerox businesses, including the document technology segment and the document outsourcing portion of the services segment. The legacy Xerox business accounts for roughly $11 billion (about 60% of total) of Xerox's 2015 consolidated revenues, while the business process outsourcing businesses represent the remaining roughly $7 billion (about 40% of total).

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