S&P: Western Digital notes, loans BBB-; notes BB+

Standard & Poor's said it assigned its BB+ corporate credit rating to Western Digital Corp.

The outlook is stable.

At the same time, the agency assigned its BBB- issue-level rating and 2 recovery rating to the company's proposed $1 billion seven-year senior secured notes and $10 billion senior secured credit facility, which consists of a $1 billion five-year revolving credit facility, a $3 billion five-year term loan A and a $6 billion seven-year term loan B. The 2 recovery rating indicates an expectation for substantial recovery (70%-90%; lower half of the range) of principal in the event of a payment default.

S&P also assigned its BB+ issue-level rating and 4 recovery rating to the company's proposed $4.1 billion eight-year senior unsecured notes. The 4 recovery rating indicates an expectation for average recovery (30%-50%; lower half of the range) of principal in the event of a payment default.

"The rating on Western Digital reflects our view that the array of SanDisk's NAND technologies and manufacturing capacity, through the Toshiba joint venture, will enable Western Digital to better navigate the transition in storage toward SSDs for data-driven performance sensitive applications serving the needs of both consumer and enterprise customers," S&P credit analyst Jenny Chang said in a news release.

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