Moody's rates IBM A1

Moody's Investors Service said it assigned A1 and P-1 issuer ratings to IBM Credit LLC, the finance subsidiary of International Business Machines Corp.

The new rating follows IBM's decision to consolidate the majority of IBM's financing businesses under IBM Credit to make it the primary captive finance arm, Moody's explained.

In conjunction with this strategy, IBM Credit recently acquired all of IBM's foreign legal entities that operate the finance business, the agency noted.

IBM Credit recently entered into a support agreement with IBM. As such, IBM Credit's A1 and P-1 issuer ratings reflect the company's stand-alone credit profile of Ba3 and the existence of the support agreement, Moody's said.

The outlook is stable, reflecting the stable rating outlook for IBM, the agency added.

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