S&P upgrades credit rating outlook on JDA Software

AP News
Posted: Aug 16, 2012 3:43 PM
S&P upgrades credit rating outlook on JDA Software

NEW YORK (AP) — Standard & Poor's Ratings Services said Thursday it has raised its outlook on JDA Software Group Inc.'s credit rating following the company's restatement of past financial data.

Earlier this year, JDA disclosed that the Securities and Exchange Commission had requested information related to revenue recognition and other accounting and financial-reporting matters for some of its past fiscal years.

Last week, the company filed its annual report for 2011. It is current on its quarterly reports this year, and has restated select financial data for the years of 2007 through 2010, S&P said.

The restated results reflect a change in the timing of the revenue that JDA had reported, and an internal investigation by JDA's audit committee found no indication of fraud or intentional wrongdoing, S&P noted.

The ratings firm raised its outlook on JDA's credit rating to "Stable" from "Negative." It maintains a corporate and senior unsecured rating of "BB-" on the company.

Even so, S&P said a possible ratings upgrade is not likely over the near term.

"We will monitor developments regarding the ongoing SEC inquiry and progress of remediating its material weakness in its internal control of financial reporting," S&P said.

JDA, which makes supply-chain management software, is based in Scottsdale, Ariz.

Shares rose 5 cents to $30.44 in afternoon trading on Thursday.