Moody's ups Dell unsecured rating

Moody's Investors Service said it affirmed the Baa3 ratings on the senior secured debt at Dell International LLC and upgraded its senior unsecured debt rating to Baa3 from Ba2. EMC Corp. is a co-borrower of the senior secured credit facilities and notes and senior unsecured notes. Moody's also upgraded Dell, Inc.'s senior unsecured rating to Ba1 from Ba2.

Dell Inc. is a wholly-owned indirect subsidiary of Dell Technologies Inc., the public parent holding company. The agency said it withdrew Dell Inc.'s corporate family rating, probability of default rating and the speculative grade liquidity rating because of the upgrade of the senior unsecured rating at Dell International to Baa3.

“The rating actions reflect Dell's substantial deleveraging driven by organic debt repayment and the $9.3 billion of Dell's share of the special cash dividend it expects from VMware, Inc. in conjunction with Dell's plans to distribute its approximately 81% ownership interest in VMware to Dell shareholders. The spin-off is expected to close on Nov. 1, 2021. These actions conclude the review of certain of Dell Inc.'s and Dell International LLC's ratings that was initiated on April 15, 2021,” Moody’s said in a press release.

The outlook is positive.

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