Moody’s lifts Seagate, rates notes Baa3

Moody's Investors Service said it upgraded Seagate HDD Cayman's senior unsecured debt ratings to Baa3 from Ba1.

The agency also withdrew Seagate Technology HDD Holdings' Ba1 corporate family rating, Ba1-PD probability of default rating and SGL-1 speculative grade liquidity rating.

As part of the action, Moody's assigned a Baa3 rating to the company's new senior unsecured note placement.

The outlook is stable.

The upgrade reflects Moody's views that the company will continue to protect its solid position in the hard disk drive (HDD) industry, will grow its revenue and profitability amid the storage technology evolution, and will maintain conservative financial policies with a disciplined debt capital profile that supports an investment grade rating.

"Seagate's recent track record of conservative financial policies, including a publicly stated 1.5 times debt/EBITDA target, supports the Baa3 rating considering its strong market position in supplying HDDs to its customers, with new revenue growth opportunities around emerging storage solutions," Moody's analyst Gerald Granovsky said in a news release.

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