On Dec. 4, 2014, Standard & Poor's Ratings Services (S&P) upgraded our Corporate and Debt credit ratings:

  • Corporate Rating revised from BB- to BB+ (a two-notch upgrade and one notch below investment grade)
  • Senior Secured debt revised from BB+ to *** (also a two-notch upgrade)
  • Senior Unsecured debt revised from B+ to BB+ (a three-notch upgrade)

We are pleased with this external acknowledgement that we are making progress in our transformation to become the leading provider of end to end IT solutions, especially given we just passed the one-year anniversary of our go-private transaction. 

In S&P’s press release, their rationale for the upgrade included:

  • Expectation that Dell will continue to reduce debt, targeting and maintaining adjusted leverage below 3x.
  • Dell's "fair" business risk profile, which incorporates the company's strong brand name and good market position across its hardware product portfolio, a geographically diverse and broad customer base, highly competitive market conditions, ongoing cost reductions enabling consistent profitability, and a modest mix of services and software revenues with higher growth and margin contribution potential.
  • Prudent balance sheet management

For more information on the S&P upgrade as well as additional agency reports, please visit our Investor Relations site