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Technology Stocks : IBM -- Ignore unavailable to you. Want to Upgrade?

To: DAN KACKLEY who wrote (2575)	2/26/1998 4:19:00 PM
From: art slott	Read Replies (1) \| Respond to of 8218

Dan, Looks like the money managers got another reason to buy the stock. Those suckers. Thursday February 26, 3:38 pm Eastern Time S&P raises IBM ratings (Press release provided by Standard & Poor's). NEW YORK, Feb 26 - Standard & Poor's today raised International Business Machine Corp's (IBM) credit rating, senior debt rating and bank loan rating to A-plus from single-A and its preferred stock rating to single-A from A-minus. Standard & Poor's also raised its ratings on units' of IBM (see list below). The A-1 commercial paper was affirmed on IBM and its units. The outlook is now stable. The upgrade reflects IBM's consistent financial performance and improved revenue and profitability balance across its broad product line. Armonk, N.Y.-based IBM continues to demonstrate progress in redirecting its business segment focus. While gross margins are under pressure due to the product and revenue mix shift to lower margin segments, Standard & Poor's expects operating margins (before depreciation, amortization, and special charges) will remain in the mid-teens percentage. Given IBM's substantial cash balances and cash generating ability, financial flexibility remains strong despite substantial ongoing share repurchases. Future acquisitions and share repurchases are expected to continue. Since January 1995, IBM has repurchased more than $15 billion of common stock under a series of buyback authorizations. While cash balances may fluctuate somewhat, IBM is expected to retain a conservative balance sheet structure, when adjusted for the worldwide financing operations. OUTLOOK: STABLE IBM's good market position and broad product and revenue base provide ratings stability, while upside potential is limited by highly competitive industry conditions, Standard & Poor's said. OUTSTANDING RATINGS RAISED Rating To From International Business Machines Corp Long-term corporate credit rating A+ A Senior unsecured debt A+ A Bank loan rating A+ A Preferred stock A A- IBM Credit Corp Long-term corporate credit rating A+ A Senior unsecured debt A+ A IBM Japan Ltd Long-term corporate credit rating A+ A Senior unsecured debt A+ A IBM International Finance N.V. Long-term corporate credit rating A+ A Senior unsecured debt A+ A IBM Australia Credit Ltd Long-term corporate credit rating A+ A RATINGS AFFIRMED International Business Machines Corp IBM Credit Corp IBM Australia Credit Ltd Short-term corporate credit rating A-1 Commercial paper A-1 More Quotes and News: International Business Machines Corp (NYSE:IBM - news) Related News Categories: options Help Copyright c 1998 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon See our Important Disclaimers and Legal Information. Questions or Comments?