Moody's cuts Sungard loan, notes to Baa3

Moody's Investors Service said it downgraded Sungard Data Systems' senior unsecured credit ratings to Baa3 from Baa2. The ratings remain on review for further possible downgrade.

On review are Sungard's Baa3 rated $600 million senior unsecured bank credit facility due 2009, $250 million senior unsecured notes due 2009 and $250 million senior unsecured notes due 2014.

Moody's said the downgrade reflects high probability of the sale of the company to a consortium of seven private equity firms and the potential for significant debt leverage.

The pro forma debt to EBITDA will be roughly 8x for fiscal year ended 2004.

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