Strong market position; Significant base of recurring revenues, in large part driven by printer supplies and services; Product and geographic diversity; Strong brand name recognition; and A history of successful product development, well supported by research and development (R&D) funding. Volatile and rapidly evolving technology markets; Highly competitive industry conditions, which are expected to constrain profitability improvements; and While the balance of Hewlett-Packard Co. (HP)'s mix of earnings has improved, the company has material earnings exposure to the relatively low-margin PC business. The ratings on Palo Alto, Cal.-based Hewlett-Packard Co. (HP) reflect a satisfactory business profile and minimal financial risk. These factors are partially offset by the significant level of operational execution risk inherent in the rapidly evolving technology market,
