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. Fiscal 2000 revenues of $48.7 billion 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 thus far in 2001 has been negatively impacted by a slowdown in information technology spending and economic weakness. EBITDA margins dropped below 8% year-to-date, as compared to historical annual EBITDA margins in excess of 11%. Despite near-term earnings weakness, the company is expected to maintain its conservative financial profile. In addition, the current rating
