Moody's: Dell unchanged

Moody's Investors Service said that Dell's A2 long term and Prime-1 short term ratings with a stable outlook would not be affected by its announcement that its board has authorized a new $10 billion share buyback program that will be executed over time with balance sheet cash.

"Dell has significant liquidity and financial flexibility to accommodate share repurchases of this magnitude within its ratings," commented Moody's senior vice president, Richard Lane.

The agency noted that the company suspended its share repurchase activity in mid-2006 while it conducted an independent investigation into certain accounting and financial reporting matters.

"The rating remains supported by Dell's solid debt protection measures, strong liquidity, low financial risk and strong market share in the PC industry and its generally good track record of execution in the intensely competitive personal computer, server and storage markets," Lane said.

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