S&P assigns Seagate notes BB+

Standard & Poor's said it assigned its BB+ ratings to $1.25 billion of senior unsecured notes proposed to be issued by Seagate Technology HDD Holdings, a direct, wholly owned subsidiary of Seagate Technology.

The facilities, which will be issued in three separate tranches, will have expiration dates of 2009, 2011 and 2016 and will rank pari passu to Seagate's existing $100 million senior unsecured revolving credit facility, the agency said, adding that Seagate is also expected to enter an amended and restated credit agreement for a new senior unsecured revolving credit facility in an amount of up to $500 million in the near term, which would replace the existing $100 million facility.

At the same time, the agency said it affirmed its BB+ corporate credit rating and stable outlook on Seagate Technology.

S&P added that the ratings on Seagate Technology reflect volatile industry dynamics in the hard disk drive industry, including periods of aggressive product pricing, substantial competition and a high degree of product-cycle risk.

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