KPMG Consulting Senior Debt Rated 'BBB-'

S&P says KPMG has a good competitive position and strong client relationships, but faces integration risk of recent acquisitions

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August 26, 2002 at 4:00 AM UTC

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On Aug. 26, 2002, Standard & Poor's assigned its 'BBB-' corporate credit rating to KPMG Consulting (KCIN ), and preliminary ratings of 'BBB-' senior unsecured, 'BB+' subordinated, and 'BB' preferred to the company's $1 billion universal shelf debt filing. Standard & Poor's also assigned a 'BBB-' senior unsecured bank loan rating to KPMG Consulting's $250 million revolving credit facility.

The ratings reflect Mclean, Va.-based KPMG Consulting's good competitive position, strong client relationships, and increased global scale. Offsetting theses factors are KPMG Consulting's focus on the systems integration sector, which makes it more susceptible to clients' discretionary spending, and the integration risk related to recent acquisitions.