Computer maker Gateway which shut down its Irish plant with the loss of 900 jobs earlier this month has had its credit rating cut to "junk" status by rating agency Standard & Poor's.
"The downgrade reflects extremely competitive industry conditions, a declining revenue base, and the company's expectation that it will not return to material profitability until fiscal 2002," the S&P said.
It said Gateway, which cut prices to compete with rivals such as Dell, "may be challenged to restore profitability to expected levels" next year.
Downgrades to junk ordinarily raise corporate borrowing costs.
Gateway spokeswoman Ms Donna Kather said that the company hasn't released details of the restructuring yet but that Gateway is confident those steps will positively impact Gateway's business.
"The outlook it is based on current market environment and our current business, which we said we are reviewing on a global basis," Ms Kather said.
Gateway shares closed last night on the New York Stock Exchange at $9.79, down 21 cents. They have fallen 84 per cent in the last year.