S&P cuts SunGard to junk

Standard & Poor's said it lowered its corporate credit and senior note ratings on SunGard Data Systems Inc. to B+ from BBB+ and removed the ratings from CreditWatch, where they were placed on October 4, 2004, with negative implications.

The outlook is stable.

In addition, a B+ bank loan rating was assigned to SunGard's $5 billion senior secured bank facilities and a recovery rating of 2 was assigned to the loan, S&P said.

The ratings on SunGard Data Systems reflect its highly leveraged financial profile following its acquisition by a group of seven equity sponsors in a leveraged buyout for about $11.4 billion, the agency noted.

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