Moody's rates HP notes Baa2

Moody's Investors Service said it assigned a Baa2 senior unsecured rating to HP Inc.'s proposed debt offering, the proceeds of which will be used to tender for a series of senior unsecured notes due December 2020, June 2021, September 2021 and December 2021.

“The leverage-neutral refinancing of debt maturities is credit positive and Moody's expects HP to maintain a relatively conservative financial policy with moderate leverage and an excellent liquidity profile. Moody's projects adjusted gross debt to EBITDA will remain around 1.7x, while free cash flow to adjusted gross debt exceeds 20% as HP generates about $2 billion in free cash flow after dividends in fiscal 2020,” Moody’s said in a press release.

The outlook is stable.

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