Hewlett-Packard Co. 'BBB+/A-2' Ratings Remain On CreditWatch Negative On Expected Revenue Results And Acquisition Plan

On March 2, 2015, global provider of technology products and solutions Hewlett-Packard Co. (HP) announced its plans to acquire Aruba Networks Inc. for approximately $2.7 billion in a transaction it expects to close by Oct. 31, 2015. On Feb. 24, 2015, Hewlett Packard reported quarterly results, including $26.8 billion in revenues, a decline of 5% year over year or 2% in constant currency, which is in line with our expectations for flat revenue performance in constant currency through 2015. On Oct. 6, 2014, we placed our ratings on HP on CreditWatch with negative implications following the company's announcement that it intends to separate into two public companies in a tax-free spin-off expected to close by the end of October 2015.

...+ On March 2, 2015, global provider of technology products and solutions Hewlett-Packard Co. (HP) announced its plans to acquire Aruba Networks Inc. for approximately $2.7 billion in a transaction it expects to close by Oct. 31, 2015. + On Feb. 24, 2015, Hewlett Packard reported quarterly results, including $26.8 billion in revenues, a decline of 5% year over year or 2% in constant currency, which is in line with our expectations for flat revenue performance in constant currency through 2015. + On Oct. 6, 2014, we placed our ratings on HP on CreditWatch with negative implications following the company's announcement that it intends to separate into two public companies in a tax-free spin-off expected to close by the end of October 2015. + We are keeping our ratings, including the '###+' corporate credit rating and 'A-2' commercial paper rating, on HP on CreditWatch with negative implications. We will continue to monitor developments related to the proposed spin-off, including required regulatory...

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