Fitch rates HP debt BBB+

Fitch Ratings said it expects to assign a long-term issuer default rating of BBB+ and short-term issuer default rating of F2 to HP Inc. in anticipation of its separation from Hewlett Packard Enterprises Inc. on Nov. 1.

Fitch also said it expects to assign BBB+ ratings to HP’s senior unsecured debt and an F2 rating to the anticipated commercial-paper program.

The ratings incorporate HP’s debt at separation, which is estimated to be between $5 billion and $10 billion, the agency said.

The outlook will be stable.

The ratings also reflect expected solid operating results despite secular demand challenges in HP’s core markets, Fitch said.

The business separation will support operating profit margin expansion and solid annual free cash flow, the agency said.

If the company commits to conservative financial policies and investments in adjacent growth markets in the long term, this could offset expectations for sustained top-line pressures in core markets, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.