CPQ bonds may be a better play,, as they look to become cheaper--
NEW YORK--(BUSINESS WIRE)--July 13, 2001--Fitch has downgraded
Compaq Computer Corp.'s senior unsecured debt to `BBB+' from `A-' and
the revolving credit facility to `BBB+' from `A-'. The company's `F2'
commercial paper rating is affirmed. The Rating Outlook is Stable. The
downgrade reflects the company's declining credit protection measures
resulting from continued pressure on revenues and EBITDA due to a
challenging technology sector, and limited visibility of future
operational results.
The ratings reflect Compaq's industry position, the breadth of its
product line, the focus on services and solutions and increasing its
recurring revenues, and the wide geographic revenue and product base.
This is balanced against the competitive nature of the computer
industry, the necessity for constant new product introductions, and
the expectations of debt expansion from the company's financing unit,
Compaq Financial Services (CFS).
Compaq recently indicated that revenues for the second quarter
would be below expectations and that the company would take a
restructuring charge of approximately $490 million, primarily related
(BSNS WIRE) Fitch Downgrades Compaq To `BBB+'; Rating Outlook Stable
Fitch Downgrades Compaq To `BBB+'; Rating Outlook Stable
BTW-- loved the post where cpq had a computer glitch as stated in correspondence to a customer,, would that not make one want to cancel an order? ROFLMAO! Nice go, MC... |
