CA denies being in the doldrums

NEWS Computer Associates has denied cashflow problems after Moody's downgraded its debt rating Friday following an SEC inquiry into the company's accounting practises. Moody's downgraded the debt to Baa2 and issued a long term negative outlook, saying it was concerned about the company's ability to refinance its debt. Computer Associates said it was disappointed, adding that its cashflow was more than adequate to fund operations and continue paying back debt. However, the company recently postponed two bond issues worth $1bn after it became aware that Moodys was considering a downgrade.