Fitch rates IBM notes A+

Fitch Ratings said it assigned an A+ rating to International Business Machines Corp.'s senior notes offering.

The proceeds will be used for general corporate purposes, including potentially meeting $6.1 billion of long-term debt scheduled to mature in 2017, Fitch said, and for acquisitions.

Given the company's intention to reorganize the financing business as a wholly owned subsidiary named IBM Credit LLC, along with plans to begin issuing debt directly to the market later in 2017 at a higher leverage, the agency said it estimates total debt-to-operating EBITDA should be about 1x.

Fitch also said it expects acquisitions could be debt-financed, given expectations for continued use of domestic cash flow for shareholder returns.

The agency also said it expects meaningful acquisition spending will continue, including a focus on building out the company's cognitive cloud capabilities.

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