Moody's Investors Service said Wednesday it downgraded business outsourcing services provider Convergys Corp.'s senior unsecured debt rating to "Baa3" from "Baa2," affecting about $650 million worth of debt.
"Baa" ratings are considered medium-grade and subject to moderate credit risks. The ratings agency kept the rating under review for further possible downgrade.
Moody's said the downgrade was based on "deteriorating operating margins" in the company's largest segment, customer management, as well as its "lack of success in replacing the loss of higher margin AT&T and Sprint revenue within the information management business," among other reasons.
