Reuters: S&P Cuts Sun Micro to Junk, Shares Dip

"Standard & Poor's on Friday cut Sun Microsystems Inc.'s debt ratings to junk, citing losses at the company and fierce competition in the server market, knocking its shares down more than 5 percent.

"The company has a decent position in the server market, but that market is relatively competitive, S&P said.

"Getting cut to junk often dramatically increases a company's borrowing costs, but Sun has no immediate borrowing needs. The cut to junk will likely not affect the company's operations. The main impact will be on investors' perception of the company, an analyst said..."

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