The ratings on Palo Alto, Cal.-based Hewlett-Packard Co. (HP) reflect a strong business profile and modest financial risk. These factors partly are offset by integration risks as it folds in the EDS operation, a challenging macroeconomic environment for hardware in both consumer and enterprise markets, and highly competitive market conditions. HP is a leading global vendor of computing and imaging solutions and services, with fiscal 2008 revenues of $118.4 billion. With the acquisition of EDS, HP's position as one of the top-tier global IT services providers is enhanced. Operating margins have increased consistently over the past three years, to 11.6% for the 2008 and continued strong through the first quarter of fiscal 2009, despite macroeconomic headwinds. Driven by profitability improvements
