we might see a bounce back up today, cpu defends itself against the moody downgrade
The Wall Street Journal -- April 8, 1999
Business Brief -- COMPUSA INC.:
Moody's Downgrades Debt,
Citing Reduced Cash Flow
Moody's Investors Service Inc. downgraded the debt ratings on $110 million of 9.5% senior subordinated notes due 2000 of CompUSA Inc., a Dallas chain of computer-specialty stores, to B2 from B1. It also downgraded the debt ratings on $300 million of the senior unsecured credit facility due 2001 to Ba3 from Ba2. Moody's said the downgrades are due to reduced expectations for cash flow and store productivity, falling unit prices for new computers, and a change in CompUSA's customer and product mix. Jim Skinner, CompUSA's chief financial officer and executive vice president, defended CompUSA's long-term plans. He said "Sometimes, they don't necessarily appreciate the long-term strategy," pointing to CompUSA's plans to sell via the Internet, for example. In New York Stock Exchange composite trading, CompUSA fell 43.75 cents, or 6.9%, to $5.9375.
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