BearingPoint calls on You for help
BearingPoint, the US consultancy and outsourcing firm, has appointed Oracle CFO Harry You as its new CEO, in a bid to show its commitment to control and transparency and ward off a potential downgrade from Moody's. BearingPoint chairman Rod McGeary said You's background in corporate finance would help the company "to put issues of control and transparency to rest once and for all."
Moody's has threatened to cut the company's debt rating from Baa3 because of slow improvement in profit, limited cash-flow generation and mistakes in its accounting.
You said: "Our first order of business will be to re-establish financial credibility and consistency with an unswerving commitment to transparency in disclosure and rigorous financial processes."
In August 2003 BearingPoint dramatically restated its earnings, erasing almost 25% of the net income it had reported in the first three quarters from its books.
The ratings agency said it would be evaluating the company's internal controls and financial reporting in coming to its decision about a downgrade.