Fitch rates Seagate notes BB+

Fitch Ratings said it assigned a BB+ rating to Seagate Technology plc's proposed offering of $500 million of eight-year senior notes to be issued by Seagate HDD Cayman.

The outlook is stable.

The proceeds from the offering will be used to repay, redeem and/or repurchase a portion of Seagate's outstanding debt and for general corporate purposes.

The ratings reflect Seagate's scale, solid liquidity, generally positive annual free cash flow, staggered debt maturity schedule, broad product portfolio and leading revenue market share in the overall hard disk drive industry, Fitch said.

The ratings also consider substantial volatility in earnings and free cash flow due to the cyclicality of the hard disk drive industry and significant fixed costs, and consistent declines in average selling prices, the agency said.

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