Ratings on Hewlett-Packard Co. reflect its position as a leading, global vendor of computing and imaging solutions and services and its strong financial profile. Revenues of $48.7 billion for fiscal 2000, ended Oct. 31, incorporate a dominant position in the laser/inkjet printer market and important positions in the personal computer and server markets. HP's historical performance has been very consistent, despite quarterly fluctuations in growth and profitability. However, HP's profitability in the first half of fiscal 2001 has been negatively affected by a slowdown in information technology spending and economic weakness. EBITDA margins dropped below 7% in the quarter ended April 30, 2001, compared to historical annual EBITDA margins in excess of 11%. Despite near-term earnings weakness, the company is
