Fitch rates Dell notes A

Fitch Ratings said it assigned an A rating to Dell Inc.'s proposed benchmark issuance of three- and 10-year senior unsecured notes.

Dell has A issuer default, bank credit facility and senior unsecured debt ratings.

The outlook is stable.

Proceeds will be used for general corporate purposes, including share repurchases, acquisitions, working capital, capital expenditures and investments in Dell's subsidiaries. Fitch said it believes a portion of proceeds may fund new finance receivables originated by Dell's financing subsidiary, Dell Financial Services.

Dell's strong financial flexibility is supported by nearly $11 billion of cash and investments as of May 1, free cash flow of nearly $2.1 billion in the latest 12 months ended May 1, an undrawn $1 billion committed unsecured revolving credit facility expiring June 1, 2011 and an undrawn $500 million, 364-day committed unsecured revolving credit facility expiring April 2, 2010, according to the agency.

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