Fitch rates Western Digital BB+

Fitch Ratings said it assigned a first-time BB+ issuer default rating to Western Digital Corp.

The outlook is stable.

The company also has BBB- ratings with recovery ratings of RR1 on its senior secured revolving credit facility, senior secured term loan A, senior secured term loan B and senior secured notes rating. Western Digital’s senior unsecured notes are rated BB+ with a recovery rating of RR4.

Pro forma for the acquisition of SanDisk Corp. and repayment of the bridge facility, Fitch said it expects the ratings will affect $15.1 billion of total debt, including the $1 billion revolving credit facility.

The company’s acquisition of SanDisk diversifies Western Digital's technology portfolio and strengthens positions in secular growth markets, the agency said.

Western Digital's technology stack, including hard disk drives, NAND flash-based solid state drives and software uniquely positions the company for next generation storage platforms, Fitch said.

The combination also increases scale and profitability, which Fitch said it believes will be essential to support higher investment intensity as Western Digital faces larger competitors.

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