BUZZ-Serco: best day in a year on Credit Suisse upgrade

** Outsourcer Serco poised for biggest 1-day move in a yr as Credit Suisse (LSE: 0QP5.L - news) lifts rating to "neutral" vs "underperform"

** Stock jumps 10.4 pct to its highest levels in over 3 mths, shaving its decline since it turned to its investors for emergency cash early Nov to around 30 pct

** Broker highlights strong reported progress in the disposal process for non-core private-sector BPO assets (co's BPO arm runs IT & customer services)

** CS reckons this could significantly reduce scale of Serco's proposed rights issue if terms agreed before end-March

** To reflect drop in assumed dilution, broker upgrades 2015E and 2016E EPS by 24 pct & 20 pct respectively

** Serco has reported a string of profit downgrades, contract problems & scandals since 2013

** One trader cites a short squeeze in response to the broker upgrade as a catalyst behind the rise; Serco is the 5th-most borrowed FTSE 250 stock, with 10 pct of its shares on loan, Markit (NasdaqGS: MRKT - news) data shows

** Trading volume relatively strong, at three quarters of the 90-day daily avg (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)