S&P downgrades Xerox

Standard & Poor's said it lowered its corporate credit rating on Xerox Corp. to BBB- from BBB, along with the senior unsecured ratings to BBB- from BBB. All senior unsecured debt is equalized at BBB-.

The ratings were removed from negative watch, where it was placed in September.

The outlook is stable.

The agency also said it upgraded issue-level ratings on Affiliated Computer Services Inc.'s notes to equalize them with Xerox's BBB- senior unsecured rating.

Despite the absence of a Xerox guarantee on the debt, the agency said it was equalizing ratings, reflecting the strategic importance of the Affiliated Computer transaction.

S&P said it views the acquisition as an enhancement to Xerox's existing business profile given the company's stable operating trends, good position in state and local government, diversified customer base and recurring revenue stream.

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