Moody's cuts debt rating of Hewlett-Packard Co.
BY Wire reports
Thursday, November 29, 2012
11/29/12 at 3:54 AM
Moody's Investors Service lowered its long-term credit rating on Hewlett-Packard, saying Wednesday that the technology giant will have trouble increasing sales of many of its products.
Moody's lowered HP's senior unsecured credit rating by one notch, to "Baa1" from "A3." The rating remains investment grade but Moody's said its outlook is negative, implying it could be further downgraded.
HP's finances will remain weaker than previously expected "over the immediate term," Moody's senior vice president Richard Lane said.
About 75 percent of HP's revenue comes from personal computers, enterprise servers, printers and services, Lane noted. Those offerings "face slow to no growth prospects over the coming years."
It's not certain whether HP can restore growth and profitability, Lane said.