NEW YORK (Standard&Poor's) May 13, 2008--Standard&Poor's Ratings Services said today it affirmed its 'A' corporate credit ratings on Palo Alto, Calif.-based Hewlett-Packard Co. (HP) and subsidiaries. The affirmation follows the company's recent announcement that it has agreed to acquire Electronic Data Systems Corp. (EDS) for approximately $13 billion, plus the assumption of about $3 billion of EDS debt (not including about $3 billion of EDS cash as of March 31, 2008). The outlook is stable. "The affirmation reflects our view that the proposed acquisition would significantly bolster HP's market position in IT services, and that despite a spike in leverage after the acquisition, we expect HP to maintain strong financial flexibility and a modest leverage profile,"
