Fitch has revised its outlook on SunGard to Stable citing a number of company and market factors.  Our readers are most familiar with the company because of its higher education products.  The improved financial rating is good news for customers and market watchers who have been asking questions about SunGard.  Read More

The Stable Outlook reflects the following considerations:

--An improved operating environment for the financial services industry relative to early 2009. As a result, Fitch no longer anticipates significant near-term industry consolidation and customer attrition, providing increased stability to the SunGard's Financial Systems (FS) revenue base.

--Fitch's expectations that SunGard's operating results for 2009 will be meaningfully better than previously anticipated. Year-to date organic (ex. acquisitions, currency impact, and the volatile broker-dealer business) top-line declines in the mid-single digits are lower than Fitch's expectation of high single digit declines. Additionally, EBITDA margins should remain stable, versus Fitch's expectations for a moderate decline, as increased pricing pressures have been largely offset by cost reductions and richer business mix and.

--Stronger than anticipated credit metrics, due to better than expected EBITDA as well as repayments of borrowings on the RCF. Fitch estimates that total leverage (total debt/LTM EBITDA) was 5.6 times (x) at Sept. 30, 2009, versus previous expectations that leverage could increase to above 6x in 2009. Interest coverage (LTM EBITDA/LTM interest expense) was 2.3x at Sept. 30, 2009, down from 2.5x at Dec. 31, 2008, given increased interest expense associated with the company's recently amended-and-extended term loan facility, but above Fitch's expectations.