S&P puts Sun on credit watch

By Stephen Shankland
Posted on ZDNet News: Oct 21, 2003 12:52:00 AM

Standard & Poor's put Sun Microsystems on a credit rating caution list called CreditWatch Friday, citing concerns about the company's costs and continuing unprofitability. "The CreditWatch listing reflects Standard & Poor's concerns about Sun's cost structure and ability to improve profitability, as well as uncertainty about the level and timing of a recovery in information technology spending and increasing market acceptance of lower-cost Windows and Linux systems," S&P credit analyst Martha Toll-Reed said in a statement.

S&P currently rates Sun's credit as "BBB." Its analysts will discuss finances with Sun managers as well as review IT spending trends before deciding the next steps in its credit rating, S&P said.