Fitch boosts VMware

Fitch Ratings said it upgraded VMware, Inc.'s long-term issuer default rating to BBB from BBB- and senior unsecured ratings to BBB from BBB-/RR2. The agency also removed the ratings from rating watch positive and assigned a stable outlook.

“The ratings and outlook on VMware reflect Fitch's expectations for continued solid operating performance that will enable the company to return leverage metrics, including total debt to operating EBITDA, to below 2.5x over the next 12-24 months. Fitch expects $4.5 billion - $5 billion of annual operating EBITDA and more than $3 billion of annual FCF, which provides ample capacity for debt reduction,” the agency said in a press release.

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