Hewlett-Packard Co. debt is the riskiest in a decade relative to Dell Inc. as Chief Executive Officer Meg Whitman struggles to transform the world's largest computer maker in an age of tablets and smartphones.
The cost to insure Hewlett-Packard bonds with credit-default swaps grew to 54.9 basis points more than its largest rival on Oct. 3 after being cheaper a year ago. The gap grew 15 points as Whitman said income would be below analyst estimates and that her company lacked "competitive focus." Moody's Investors Service said yesterday it may downgrade the firm.
Hewlett-Packard is suffering from falling sales of computers and printers and a debt load that's climbed above the industry average this year. A "deteriorating outlook" kept the company from using savings to fund investment in businesses such as security, according to an analyst presentation.
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.