Our 'BBB+' corporate credit rating on Hewlett-Packard Co. (HP) is derived from: Our anchor of 'a-', based on our "satisfactory" business risk and "minimal" financial risk profile assessments for the company. Our "fair" management and governance assessment had a negative one-notch impact on the anchor rating. Leading global provider of technology products and solutions. Product, geographic, and customer diversity. Renewed emphasis on product research and development. Rapidly evolving market conditions and ongoing strategic execution risks. Expected lack of total revenue growth, restructuring charges, and industry pricing pressure will continue to pressure operating margins over the near term. Improved free operating cash flow (FOCF), sustained by stabilized operating profitability and reduced working capital requirements. Management emphasis on maintaining balance sheet strength.
