Standard&Poor's on March 7, 2002, lowered its corporate credit and senior debt ratings as well as its commercial paper rating on Palo Alto, Calif.-based Hewlett-Packard Co. The downgrade reflects Standard&Poor's view of HP's business and financial risk profile pro-forma for the completion of the merger with Compaq Computer Corp. Ratings on Compaq Computer Corp. remained on CreditWatch with developing implications, where they were placed Dec. 13, 2001. CreditWatch developing indicates that ratings could be revised upward or downward. Standard&Poor's recognizes the strategic validity of the merger, the improved market position of the combined company, and HP's strong financial profile for the rating. However, these positive factors are offset by the heightened level of operational
