The ratings on Palo Alto, Calif.-based Hewlett-Packard Co. (HP) reflect its broad market position and strong financial profile for the rating. These factors partially are offset by the significant level of operational execution risk inherent in the highly competitive and rapidly evolving technology market, as well as the company's predominant earnings reliance on its printing and imaging segment. HP is a leading global vendor of computing and imaging solutions and services, with fiscal 2003 revenues of $73 billion. Although HP continues to post strong results in its imaging and printing group, operating performance in the highly competitive personal systems and enterprise segments has been more variable and, in aggregate, subpar for the rating level. Nevertheless, HP's ongoing focus on cost
