Fitch rates IBM Credit notes A+

Fitch Ratings said it assigned an expected rating of A+(EXP) to IBM Credit LLC's unsecured notes issuance.

The notes will rank pari passu with all other unsecured and unsubordinated debt of IBM Credit.

Proceeds will be used for general corporate purposes, which may include the repayment of debt, investments in or extensions of credit to IBM Credit’s subsidiaries or the financing of possible acquisitions or business expansion.

Fitch said the equalization of the unsecured ratings with IBM Credit’s long-term issuer default rating reflects the expectation of average recovery prospects for the notes and the agency’s expectation that proceeds from the issuance will be used to repay existing debt outstanding, as necessary, to manage leverage to the company’s target of 9 times debt-to-equity.

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