Moody's downgrades Sungard

Moody's Investors Service said it downgraded Sungard Availability Services Capital Inc.'s probability of default rating to D-PD from Ca-PD/LD following news that the company voluntarily filed a petition for reorganization under Ch. 11 of the U.S. bankruptcy code.

Sungard AS's corporate family rating was affirmed at Ca, senior secured bank credit facility rating at Caa3 (LGD 3) and unsecured rating at C (LGD 5).

Under the prepackaged plan of reorganization, the company's funded debt obligations would decline by more than $900 million, Moody's said, and annual cash interest payments would decline by about $100 million.

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