S&P upgrades IBM

Standard & Poor's said it raised the long-term ratings on International Business Machines Corp. (IBM) to AA- from A+, along with a short-term rating on the company to A-1+ from A-1.

The outlook is stable.

The upgrade reflects a revision of IBM's business risk profile to excellent from strong, S&P said, incorporating an ongoing revenue and earnings mix shift to more stable and higher margin software and services revenues.

The ratings reflect the company's excellent business risk profile, incorporating a strong and broad base of technology, expanding presence in the stable service and software markets and a modest financial risk profile, the agency said.

A highly competitive industry environment and the continuing challenges of managing a leading-edge technology and product base partly offset these factors, S&P said.

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