CA faces degrading circumstances

Money problems cause concern for credit ratings company...

Computer Associates (CA) has been forced to stall closing a $1bn bond issue after credit ratings company Moody's warned that it may downgrade the company's debt. The world's fourth largest software company has seen tough times. At the end of the last quarter the company had $3.8bn in debt and a diminished cash-flow of $690m. The credit rating company said its concerns for the company's cash-flow problems meant the possibility of a downgrade. Moody's warnings caused CA shares to close down 13.5 per cent at $27.12. CA's debt currently rates two notches above junk status.