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NEW YORK (AP) - Fitch Ratings on Friday raised the credit rating outlook for Seagate Technology and its subsidiaries after the company turned in an improved first-quarter performance.
The ratings agency raised Seagate's rating to "Stable" from "Negative." It also affirmed the company's "BB" issuer default rating.
About $2.4 billion of debt is affected by Fitch's ratings action, including Seagate's $350 million secured revolving credit line.
Fitch said industry pricing has improved, contributing to higher profit margins at the company. Pricing stabilized after manufacturers cut capacity and demand improved.
Fitch said Seagate's finances also got better, with operating profit more than doubling in the quarter from a year ago. It also reduced debt by $700 million in fiscal 2010.
Moreover, only $100 million in debt is coming due in 2010, which the company can handle. Seagate makes computer hard disk drives for data storage.
Shares of the Scotts Valley, Calif.-based company were down 19 cents to close at $15.73 Friday.
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