S&P may upgrade H3C

Standard & Poor's said that it had kept its BB- long-term corporate credit rating on H3C Holdings Ltd. and the BB+ bank loan rating on the company's senior secured credit facility on CreditWatch with positive implications.

The watch reflects the likely completion of Hewlett-Packard Co.'s acquisition of H3C's parent, 3Com Corp. in the first half of 2010, S&P said.

The agency said it believes H3C could benefit from the proposed acquisition because Hewlett-Packard has a stronger credit profile than 3Com, whose credit profile has been a rating constraint for H3C.

H3C has ample liquidity, and as at Sept. 30, 2009, the company had a net cash position comprising $441.7 million in cash and cash equivalent against total debt of $112 million, S&P said.

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