IBM Corp’s first quarter figures did not fool Standard & Poor’s Corp, which only affirmed its ratings on the company’s debt, which have the senior unsecured debt at single-A, preferred stock at single-A-minus and commercial paper at A-1. Total debt is about $23,000m. It says the first quarter results are an encouraging sign but the company’s performance has been subpar for existing ratings over the past two years. In maintaining IBM’s ratings during a difficult period, the agency gave considerable benefit to present management’s plan for restructuring, which was expected to bring costs more in line with the level of business; and expected profitability to resume in 1994, and be sustained.
