Fitch affirms Dell on acquisition

Fitch Ratings said it affirmed Dell Technologies, Inc.’s ratings, including its BB+ long-term issuer default rating.

The outlook is stable. The actions affect about $56 billion of total debt, including undrawn credit facilities.

Fitch said the ratings and outlook reflect its belief that Dell's July 2 announcement that it intends to acquire its outstanding class V common stock (tracking stock) is neutral to slightly positive to the company's credit profile, given complexity around the tracking stock and Dell's 80% ownership of VMware Inc.

The announcement marks Dell's conclusion of its evaluation of strategic business opportunities the company initiated in January, the agency noted.

Dell plans to convert the class V common stock into: (a) 1.3665 class C common stock of Dell; or (b) $109 in cash subject to an aggregate amount of cash consideration not exceeding $9 billion.

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