Fitch rates Hewlett-Packard notes A+

Fitch Ratings said it assigned an A+ rating to Hewlett-Packard Co.'s offering of senior debt. The notes are expected to rank pari passu with all existing debt of the company.

The outlook is stable.

Net proceeds from the offering are expected to be used to repay $1 billion of 2.25% global notes due May 2011 and $750 million of floating-rate notes due May and for general corporate purposes, which may include the repayment of outstanding commercial paper balances.

HP's ratings continue to reflect solid credit protection measures; strong financial flexibility and liquidity; significant recurring revenue primarily via printer supplies, outsourcing and technology services and software maintenance; a broad product portfolio with strong worldwide market-share positions in printing, personal computers, enterprise systems and information technology services; and extensive market coverage due to an established multi-channel distribution model, the agency said.

The ratings consider risk of debt-financed acquisitions and/or share repurchases and the sustainability of the recent rebound in demand for IT hardware amid signs of a slowing global economic recovery, the agency added.

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