Baan Co. N.V.'s Rtgs Placed On CreditWatch Neg By S&P.PARIS--(BUSINESS WIRE)--Standard & Poor's CreditWire 10/30/98-- Standard & Poor's today placed its double-'B' long-term corporate credit and single-'B'-plus subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". ratings on Baan Co. N.V. (Baan) on CreditWatch with negative implications. This action follows the company's announcement of very poor third-quarter results, along with the implementation of a large restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). program. Virginia- and Netherlands-based Baan is a leading provider of business management software used to automate To turn a set of manual steps into an operation that goes by itself. See automation. business processes such as sales forecasting Sales forecast A key input to a firm's financial planning process. External sales forecasts are based on historical experience, statistical analysis, and consideration of various macroeconomic factors. , inventory procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. , manufacturing, and finished-goods delivery. The company posted a net loss of $12.5 million for the first nine months of 1998, on revenues of $604.5 million. The $31.7 million third-quarter net loss and the scope of the announced restructuring program (a one-off charge of $110 million to be taken in the last quarter of 1998, coupled with a 20% cut in the work force) together emphasize the difficult market conditions within the industry segments in which Baan operates. This is highlighted by the group's rising number of delayed and canceled orders from customers. Moreover, Baan must face internal problems, such as those generated by its recent external-growth drive. Standard & Poor's will meet with management to review strategic, operating, and financial plans prior to taking a rating action. -- CreditWire |
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