NEW YORK: Moody's Investors Service said on Friday it cut its credit rating on Hewlett-Packard's debt, as the technology giant adjusts to the acquisition of Compaq Computer Corporation.
Moody's downgraded Hewlett-Packard's senior unsecured debt rating to A3 from A2 and the company's short-term rating to Prime-2 from Prime-1, citing uncertainties surrounding the melding of operations between the two technology power houses.
"The downgrade reflects the challenges and uncertainties regarding the integration of the combined operations of HP and Compaq," the agency said in a statement, adding that the outlook on the ratings remained negative. Moody's also said it may still raise Compaq's Baa2 senior unsecured rating, pending clarification on whether Hewlett-Packard will guarantee Compaq's debt.
(C) Reuters Ltd.
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