Standard & Poor’s (S&P), the global credit rating service, late last week upgraded Dell’s corporate credit rating from BB- to BB+, with a “Stable” outlook, a two-notch upgrade from where it was placed more than a year ago as Dell went private.
In revising its rating, S&P noted Dell’s prudent balance sheet management and the expectation that Dell will continue to reduce debt. The two-notch upgrade – one below investment grade – is an indicator of Dell’s ongoing performance and profitability, and also reiterates the company’s ability to strategically use its balance sheet to support the needs of customers.
“This upgrade from Standard and Poor’s reflects our focus on customers, resulting performance and growth, and our ability to drive cash flow enabling us to pay down our debt position,” said Tom Sweet, Dell’s CFO.
For more, read S&P’s full release and a summary from FT. In addition, the upgrade improves supplier relationships, helps lower borrowing costs, and ultimately, provides broader access to credit and capital.