Fitch to rate IBM Credit notes A+

Fitch Ratings said it expects to assign a rating of A+ 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, including the repayment of debt, investments in or extensions of credit to the company’s subsidiaries or the financing of possible acquisitions or business expansion.

The expected rating is equalized with the ratings assigned to IBM Credit’s existing senior unsecured debt as the new notes will rank equally in the capital structure, the agency said.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.