Fitch Rates Dell's CP 'F1'; Bank Facility at 'A'.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch has assigned the following new ratings for Dell Inc. (Dell): --$1 billion bank credit facility 'A'; --Commercial paper 'F1'. Fitch also affirms the following outstanding ratings: --Issuer Default rating (IDR IDR In currencies, this is the abbreviation for the Indonesian Rupiah. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) 'A'; --Senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. 'A'. The Rating Outlook is Stable. Dell's $1 billion commercial paper (CP) program is designed to provide funding for general corporate purposes, including funding the future growth of Dell Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. (DFS (Distributed File System) An enhancement to Windows NT/2000 and 95/98 that allows files scattered across multiple servers to be treated as a single group. With Dfs, a network administrator can build a hierarchical file system that spans the organization's LANs and ), due primarily to the fact that a majority of the company's cash position is located overseas. Fitch believes the rising non-U.S. cash balance reflects Dell's strong growth and increasing importance of non-U.S. markets to Dell's overall financial performance. The five-year, $1 billion committed unsecured revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility expiring June 1, 2011 serves primarily as a backstop for Dell's CP program. The proceeds from any borrowings are to be used to provide liquidity to support the issuance of CP and for other general corporate purposes. The bank facility requires compliance with certain conditions precedent that must be satisfied prior to any borrowing, as well as ongoing compliance with specified affirmative and negative covenants, including maintenance of a minimum interest coverage ratio. Amounts outstanding under the facility may be accelerated for typical defaults, including failure to pay principal or interest, breaches of covenants, non-payment of judgments or debt obligations in excess of $200 million, occurrence of a change of control and certain bankruptcy events. Dell continues to have strong financial flexibility, supported by approximately $11 billion in cash and investments as of May 5, 2006, and an operating model with a negative cash conversion cycle, consistently negative 40 days or less over the previous three fiscal years based on Fitch's estimates. In addition, free cash flow exceeded $4 billion for fiscal 2006 due to strong operating performance. Total debt as of the first fiscal quarter of 2007 was $503 million, consisting primarily of $200 million of senior notes due in 2008 and $300 million of senior debentures due in 2028. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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