Cupertino, Calif.-based Apple's ratings reflect a conservative financial profile and significant liquidity, offset by extremely competitive personal computer (PC) industry conditions and limited global market share. While Apple's strategic and business risk profile has benefited from a stable and experienced management team, the company is still dependent upon a relatively limited product base. Total revenues were $5.7 billion in the fiscal year ended Sept. 28, 2002. Excluding nonrecurring items, Apple has maintained profitability over the past year, despite a very challenging industry environment. EBITDA coverage of interest is expected to remain in excess of 5 times (x). Apple is expected to maintain a strong financial profile. Leverage levels are modest; total debt to EBITDA is expected to remain less than
