Moody's affirms Seagate; outlook up to stable

Moody's Investors Service said it affirmed Seagate Technology HDD Holdings, Inc.'s ratings (Ba2 corporate family) and changed the outlook to stable from negative.

The outlook revision to stable reflects Seagate's better-than-expected operating performance, increase in year-over-year cash flow generation, improving liquidity profile and good progress on debt repayment as the company realized benefits from facility closures, cost reductions and lower capex requirements, which we anticipate will continue, the agency said.

Moody's noted that it also captures good execution on time-to-market delivery of new products as well as an improved customer demand environment for PCs, which we expect to continue as a result of contracting replacement cycles.

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