Fitch rates Hewlett-Packard notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Hewlett-Packard Enterprise Co.’s senior notes offering.

Proceeds and cash on hand will be used to fund the acquisition of Silver Peak, which will add annual revenue of more than $100 million, Fitch said.

Remaining proceeds and any remaining proceeds from April’s notes offering will be used to redeem $3 billion of 3.6% senior notes due Oct. 15.

Also, Fitch affirmed Hewlett-Packard’s ratings, including the BBB+ issuer rating, and changed the outlook to negative from stable.

“The rating and outlook reflect Fitch’s expectation that FCF will remain weaker than previously expected through fiscal 2021, driven by lower revenue and accelerated by the coronavirus pandemic and cash outlays related to HPE’s cost savings initiatives,” the agency said in a press release.

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