Fitch affirms Seagate

Fitch Ratings said it has affirmed the ratings of Seagate Technology and its wholly owned subsidiaries, Seagate Technology HDD Holdings and Maxtor Corp., the debt of which is irrevocably fully and unconditionally guaranteed by Seagate, as follows:

Seagate at issuer default rating at BBB- and unsecured credit facility at BBB-; Seagate HDD at issuer default rating at BBB-, senior unsecured debt at BBB- and unsecured credit facility at BBB-; and Maxtor at issuer default rating at BBB-, senior unsecured debt at BBB- and subordinated debentures at BB.

The outlook is revised to negative from stable.

The negative outlook reflects Fitch's expectations for a greater-than-normal contraction of average selling prices and gross margin pressure, due to the deteriorating worldwide information technology spending outlook for consumers and enterprises given the increasingly challenging macroeconomic environment.

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