Leading global provider of technology products and solutions. Product, geographic, and customer diversity. Renewed emphasis on product research and development. Near-term strategic execution risks. Expected revenue declines and restructuring charges will pressure operating margins over the near term. Reduced working capital requirements will sustain improved free operating cash flow. Management emphasis on restoring balance-sheet strength. Moderate share repurchases, funded from discretionary cash flow. The stable outlook reflects Standard&Poor's Ratings Services' expectation that Hewlett-Packard Co.'s (HP's) more moderate financial policies and commitment to restoring its balance sheet will sustain debt protection metrics that are appropriate for the current rating. Specifically, we expect that substantial debt reduction, including upcoming debt maturities, will more than offset a modest deterioration in operating
