Research Update: New Parent Xerox Holdings Corp. Rated 'BB+', Existing Ratings Affirmed; Outlook Negative

U.S.-based printer technologies and managed document services provider Xerox Corp. will receive $2.3 billion in net after tax proceeds from the sale of its 25% stake in Fuji Xerox Co. Ltd. and related transactions. While we acknowledge the liquidity benefits and strategic flexibility, this adds longer-term operational uncertainty as the company seeks supplier diversification and operates more independently. In addition, Xerox concluded its strategic review of its equipment financing business and decided to retain the finance operations. On Nov. 8, 2019, S&P Global Ratings affirmed all of its ratings on Xerox, including our 'BB+' issuer rating and removed them from CreditWatch with negative implications, where we placed them on March 19, 2019. We are also assigning our 'BB+' long-term issuer

...- U.S.-based printer technologies and managed document services provider Xerox Corp. will receive $2.3 billion in net after tax proceeds from the sale of its 25% stake in Fuji Xerox Co. Ltd. and related transactions. - While we acknowledge the liquidity benefits and strategic flexibility, this adds longer-term operational uncertainty as the company seeks supplier diversification and operates more independently. - In addition, Xerox concluded its strategic review of its equipment financing business and decided to retain the finance operations. - On Nov. 8, 2019, S&P Global Ratings affirmed all of its ratings on Xerox, including our '##+' issuer rating and removed them from CreditWatch with negative implications, where we placed them on March 19, 2019. - We are also assigning our '##+' long-term issuer rating to Xerox Holdings Corp., the newly formed ultimate parent company of Xerox Corp. We expect Holdings to be the filer of the audited financial statements. - The negative outlook reflects...

Research Update