S&P gives Seagate HDD notes BB+

Standard & Poor's said it assigned its BB+ issue-level rating to senior unsecured notes with an intermediate maturity issued by Seagate HDD Cayman.

The company intends to use the proceeds from the proposed notes for general corporate purposes, including repayment of existing debt.

The agency said it rates the new notes the same as the corporate credit rating on the company.

The BB+ corporate credit and other ratings and stable outlook on Seagate Technology reflect its business concentration within the hard disk drive sector, which is cyclical and threatened by a secular migration to solid state disk drive technology, resulting in S&P's assessment of the company's business risk profile as "fair".

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