Gateway closes lowest of the low

The return to profitability could be a challenge...

By Sonya Rabbitte, 23 August 2001 10:47

NEWS Gateway shares tumbled overnight as Standard & Poor downgraded the computer manufacturer to junk status. Shares were down 2.1 per cent at the close of trading in New York yesterday after Standard & Poor slashed Gateway's corporate credit and bank loan rating two notches each to 'BB', its second highest junk grade, down from 'BBB-minus.' Standard & Poor also issued a negative ratings outlook, claiming Gateway may be 'challenged' to return to profitability next year. Gateway shares are currently down 86 per cent on a 52-week high of $69.88, and the company has fallen 25 per cent this year on the American Stock Exchange computer hardware index.

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