Recent actions by a high-profile ratings agency could put lenders on the hook for a $7 billion credit to Xerox Corp.

Moody’s Investors Service sparked concern among Xerox’s lenders Friday when it downgraded the company’s long-term senior unsecured credit rating to Ba1 from Baa2 and its short-term rating to “not prime” from “prime 2.” Moody’s cited illiquidity, an inefficient cost structure, increased competition, decreased demand, and three restructurings since 1998 as reasons for the downgrading.

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