An estimated $20 million of Xerox's bank debt reportedly traded early last week around 81-83. Also, early last week, Standard & Poor's downgraded the commercial paper to BB from BBB- on increased market uncertainty. While the S&P rating noted the company's strides in reducing debt by selling assets and getting vendor financing, the downturn in the economy could limit Xerox's growth projections. In a conference call last Tuesday, the company said the Sept. 11 attacks had caused an unprecedented loss in the company's business. As the rating notes, economic weakness reduced prospects for significant improvement. One market player spoke optimistically about the company's strategy, even in light of the latest forecast. "They're doing everything they're supposed to do from vendor financing to cutting costs. They got themselves out of the hole," he said. "The only thing against them is that the economy is weak." Calls to Barry Romeril, cfo, were referred to spokeswoman Christa Carone, who declined to comment.
Xerox Trades on Ratings Downgrade