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, as well as the company's continued 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 operating profitability in HP's imaging and printing group weakened on a year-over-year basis over the past three quarters, the company posted strong growth in revenues and EBITDA in the July 2005 quarter, driven by operating performance improvements in the personal systems
