Codestone

Category: ERP systems

The financial future of enterprise resource planning (ERP) systems provider SAP appears to be in good shape, according to a new credit rating.

It has been awarded an A+ grade by the Morningstar Credit Committee as the software company - which produces ERP systems such as SAP Business One - had remained essentially debt-free until 2008 and has begun tapping into public bond markets since.

The committee noted SAP is able to generate revenue that usually shows "high-teens percentage of sales".

It observed: "SAP's ability to produce consistent cash flow is the result of its dominant position in the [ERP] software market."

Annual support fees enable the organisation to maintain a steady stream of payments, the body added.

Felix Feddersen, senior vice-president for SAP's large enterprise division for Latin America, recently claimed the software provider is now turning its attentions to future growth and is no longer focusing on cutting costs.

Posted by Jamie Rees