HP 2014 Annual Report Download - page 83

HEWLETT-PACKARD COMPANY AND SUBSIDIARIES
Management’s Discussion and Analysis of
Financial Condition and Results of Operations (Continued)
Available Borrowing Resources
We had the following resources available to obtain short- or long-term financing if we need
additional liquidity:
As of October 31, 2014
In millions
2012 Shelf Registration Statement .................................... Unspecified
Commercial paper programs ........................................ $16,202
Uncommitted lines of credit ........................................ $ 1,587
For more information on our available borrowings resources, see Note 12 to the Consolidated
Financial Statements in Item 8, which is incorporated herein by reference.
Credit Ratings
Our credit risk is evaluated by major independent rating agencies based on publicly available
information as well as information obtained in our ongoing discussions with them. Our credit ratings as
of October 31, 2014, were as follows:
Standard & Poor’s Moody’s Investors Fitch Ratings
Ratings Services Service Services
Short-term debt ratings ....................... A-2 Prime-2 F2
Long-term debt ratings ....................... BBB+ Baa1 Aǁ
After the announcement of our separation in October 2014, our credit ratings were assigned a
negative outlook by Standard & Poor’s Rating Services and Fitch Rating Services. Additionally,
Moody’s Investors Service placed us under review for downgrade. In December 2013, Moody’s
Investors Service affirmed its negative outlook assigned in November 2012. While we do not have any
rating downgrade triggers that would accelerate the maturity of a material amount of our debt,
previous downgrades have increased the cost of borrowing under our credit facilities, have reduced
market capacity for our commercial paper and have required the posting of additional collateral under
some of our derivative contracts. In addition, any further downgrade to our credit ratings by any of
these rating agencies may further impact us in a similar manner, and, depending on the extent of the
downgrade, could have a negative impact on our liquidity and capital position. We can rely on
alternative sources of funding, including drawdowns under our credit facilities or the issuance of debt
or other securities under our existing 2012 Shelf Registration Statement, if necessary, to offset potential
reductions in the market capacity for our commercial paper.
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