Fitch affirms Hewlett-Packard

Fitch Ratings said it affirmed Hewlett-Packard Co.'s long-term issuer default rating at A+, senior credit facilities at A+, senior unsecured debt at A+, short-term issuer default rating at F1 and commercial paper at F1. The agency also said it affirmed Electronic Data Systems LLC's long-term issuer default rating at A+ and senior unsecured debt at A+. Electronic Data is a wholly-owned subsidiary whose debt is fully and unconditionally guaranteed by Hewlett-Packard. Hewlett-Packard International Bank plc's short-term issuer default rating and commercial-paper rating was affirmed at F1.

The outlook is stable.

The ratings reflect the company's solid credit protection measures and strong financial flexibility, Fitch said, along with the liquidity primarily provided by about $14 billion of cash and consistent free cash flow in excess of $5 billion annually in the last five fiscal years.

Concerns include its long-term risk of debt-financed acquisitions or share repurchases, the agency said, and the potential long-term threat to the company's highly profitable printer supplies business from remanufactured or counterfeit cartridges.

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