S&P: Dell Technologies BB+

S&P said it assigned a BB+ corporate credit rating to Dell Technologies Inc.

The outlook is stable.

The agency also said it affirmed the BB+ corporate credit rating on Dell Inc. and subsequently withdrew the rating at the company's request.

The rating on Dell reflects a view that the combined Dell and EMC Corp. entity would be one of the largest technology companies globally with leadership positions across the PC, servers, storage and virtualization software markets, S&P said, and improved sales channels covering small- to mid-sized businesses and large enterprises.

Offsetting factors include the combined company's high pro forma adjusted leverage of about 4x, along with the integration risks that the business combination poses, the agency said.

The ratings also consider Dell's commitment to repay debt with proceeds from non-core asset sales and free operating cash flow generation so that pro forma adjusted leverage would decline from the current 4x level, S&P said.

The EMC acquisition follows Dell's leveraged buyout by its founder and CEO Michael Dell and Silver Lake Partners in October 2013 for about $25 billion, the agency explained.

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