S&P Downgrades Dell’s Credit Rating (DELL)

Standard & Poor’s Rating Services announced on Wednesday that it has lowered the corporate credit rating on Dell Inc. (DELL).

The PC maker’s corporate credit rating was lowered form BBB to BB-, and its commercial paper rating was lowered from A-2 to B. Dell’s issue-level rating on senior unsecured debt was also downgraded from BBB to B+. Standard & Poor’s also assigned the company a stable outlook.

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Commenting on the downgrade, Standard & Poor’s credit analyst Martha Toll-Reed noted “The downgrade incorporates our revision of Dell’s business risk profile to fair from satisfactory, reflecting ongoing pricing pressures and volume declines in PCs, which is still Dell’s largest business by revenue, and also our revision of its financial risk profile to aggressive from modest, pro forma for the significantly higher leverage resulting from the proposed LBO.”

Dell shares traded flat during Wednesday’s session. Year-to-date the stock is up 29.68%.