S&P Downgrades Palm's Credit Rating

Posted By: Ryan Kairer Thursday, December 04, 2008 9:04:51 AM

Standard & Poor's today downgraded Palm Inc.'s corporate credit rating to CCC+ from B- on account of their recent revenue warning. S&P has also lowered its ratings on Palm's secured term loan and revolving credit facility to CCC from B-. (via MarketWatch)

In a statement Bruce Hyman, an S&P credit analyst remarked, "The actions reflects Palm's announcement that sales in the November 2008 quarter will decline to about half of the August quarter's level, reflecting challenging economic conditions and market share losses."