Fitch rates Seagate loan BBB-

Fitch Ratings said it assigned a BBB- rating to the $350 million four-year first-lien senior secured credit facility obtained by Seagate HDD Cayman, an indirect subsidiary of Seagate Technology plc.

The outlook is stable.

Fitch maintains BB+ issuer default ratings for the companies, rates Seagate HDD Cayman's senior notes BB+ and rates Seagate Technology International's secured second-lien notes BBB-.

The credit facility is guaranteed by Seagate and certain material subsidiaries of the company and is secured by a lien on substantially all tangible and intangible assets located in the United States, Cayman Islands, Northern Ireland, Singapore and Ireland, Fitch said.

The ratings reflect Seagate's solid liquidity, strong near-term consumer demand for smartphones and media tablets, broad product portfolio, scale and vertically integrated model and continued growth of digital rich media by consumers and enterprise storage requirements, Fitch said.

The ratings consider substantial volatility in earnings, event risk associated with a potential revival of recently unsuccessful leveraged buyout negotiations or implementation of aggressive shareholder friendly activities and consistent declines in average selling prices, the agency said.

As of Dec. 31, the debt-to-operating EBITDA ratio was 1.3 times.

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