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 partly are offset by the significant level of operational execution risk inherent in the highly competitive and rapidly evolving technology market, and 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 2004 revenues of $80 billion. Although HP continues to post strong results in its imaging and printing group, operating performance in the personal systems and enterprise segments has been more variable and, in aggregate, subpar for the rating level. Although global IT spending is expected to grow moderately in
