Moody's lifts Global Imaging

Moody's Investors Service said it upgraded all of the credit ratings of Global Imaging Systems, Inc. and changed the outlook to stable from positive.

Moody's upgraded the company's $70 million senior secured revolving credit facility due 2009 to Ba2 from Ba3, its $207 million senior secured term loan due 2010 to Ba2 from Ba3, its $57.5 million convertible senior subordinated notes due 2008 to Ba3 from B2 and the corporate family to Ba2 from Ba3.

Moody's said the ratings upgrade reflects strong top line growth and solid operating margins, successful integration of recent acquisitions, consistent free cash flow generation and a large and diverse middle market customer base.

The ratings also benefit from a significant recurring revenue stream and a diverse customer base. About 90% of office automation sales are accompanied by service contracts. Service and supplies comprised over 45% of gross profit in the 2005 fiscal year.

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