Moody's: IBM unaffected

Moody's Investors Service said that International Business Machines Corp.'s Aa3 senior credit rating and stable outlook are unaffected by its announcement that its board authorized an additional $8 billion stock repurchase plan and a 15% increase in its common dividend.

IBM's Aa3 long-term rating remains supported by the strengthening business profile, which includes a growing emphasis on higher-margin software and services businesses in lieu of more commoditized hardware offerings, Moody's said.

Given IBM's improving revenue mix, its credit metrics and operating performance is expected to improve and remain robust through business cycles, the agency added.

The rating also considers IBM's conservative capital structure, robust liquidity profile and the expectation that it will manage share repurchase activity within the context of its free cash flow generation after considering acquisitions opportunities, Moody's said.

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