Strong market positions; Solid base of recurring revenues, driven by printer supplies and business 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 and exposure to cyclicality, as in the current market; Leverage that is temporarily high for the rating, resulting from the EDS acquisition; and While the balance of Hewlett-Packard Co.'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 strong business profile and modest financial risk. These factors partly are offset by integration risks
