Fitch ups Electronic Data

Fitch Ratings said it has upgraded Electronic Data Systems, LLC's (formerly known as Electronic Data Systems Corp.) ratings subsequent to Hewlett-Packard Co.'s (rated A+/F1/stable outlook) announcement that it will unconditionally and irrevocably guarantee the debt of Electronic Data/

The agency noted that HP completed the acquisition of Electronic Data on Aug. 26, noting that the ratings for the company have been upgraded as follows: issuer default rating to A+ from BBB and senior unsecured debt to A+ from BBB.

Furthermore, Fitch said it has withdrawn Electronic Data's bank credit facility rating of BBB and removed the company from rating watch positive, where it was placed on May 13 when the acquisition was initially proposed.

The outlook is stable.

As a result of the guarantee, the agency said that the company's ratings are supported by HP's strong financial flexibility and liquidity provided by a significant cash position and robust free cash flow.

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