Moody's: IBM unchanged

Moody's Investors Service said that IBM Corp.'s announcement today that its board has authorized a new $15 billion stock repurchase plan will not impact the company's A1 senior unsecured credit rating and stable outlook.

IBM announced that its board authorized an additional $15 billion apart from the $400 million that remained under its share repurchase program as of the end of February, Moody's said it, noting that it expects that the share repurchase activity will be executed within the company's free cash flow generation and that balance sheet liquidity will remain robust through 2008.

"The rating continues to reflect the company's leading market position and well-diversified business in a range of information-technology products, software and services, in addition to its track record of consistent and solid earnings and operating cash flow generation, all of which support expectations of strong pro forma strong debt protection measures and liquidity profile," said Moody's senior vice president, Richard Lane.

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