Printer Friendly

IBM CORP. $925 MILLION SHELF REGISTRATION RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Oct. 8 /PRNewswire/ -- International Business Machines Corp.'s (NYSE: IBM) $925 million shelf is rated `A' by Fitch. Combined with an existing shelf, IBM can issue $1 billion in additional debt. Proceeds will be used for general corporate purposes. The credit trend is stable.
 The shelf is part the company's plan approved by the board of directors in July 1993 to enhance liquidity. Other steps include issuance of common shares for the U.S. retirement plan trust fund and employees stock purchase plan, securitization of up to $1 billion of U.S. receivables, and the reduction of the quarterly dividend.
 IBM's rating reflects its product and geographic diversity, market, product, and research leadership, and solid financial resources. Concerns include large cash requirements over the next two years from the recent restructuring, continued decline of the company's mainframe business, related vulnerability of the maintenance and software businesses, and potential vulnerability of its midrange computer product. Financial concerns include rapid increases in leverage and a loss of investor confidence. Liquidity remains adequate to meet maturing debt and fund operations.
 Concerns are mitigated by IBM's steps to bolster liquidity and reposition the company competitively, enabling shorter product development time and offering customers lower-cost, higher-performance products.
 -0- 10/8/93
 /CONTACT: Donald H. Powell, 212-908-0570, or Nancy Stroker, CFA, 212-908-0533, both of Fitch/
 (IBM)


CO: International Business Machines Corp. ST: IN: CPR SU: RTG

MP -- NY056 -- 0282 10/08/93 15:59 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 8, 1993
Words:241
Previous Article:HOMECARE MANAGEMENT, INC. RESPONDS TO WALL STREET JOURNAL ARTICLE
Next Article:STATE AWARDS EMPLOYEE OWNERSHIP GRANT FOR BEAVER COUNTY FIRM
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters