Credit: Shutterstock photoXerox Corp ( XRX ) recently upped the quantum of its bond offering after an upgrade of investment grade rating from BBB- to BBB by global credit rating agency Standard & Poor's. The boost in the credit rating by one notch has enabled the company to raise bond offering to $500 million from $300 million planned earlier.
According to Bloomberg, the company sold 2.75% debt scheduled to mature Mar 2019 to yield 137.5 basis points more than the single maturity treasuries. As per Moody's Investors Service, the bonds are expected to be rated an equivalent Baa2.
Rating affirmations or upgrades from credit rating agencies play an important part in retaining investor confidence in the stock as well as maintaining credit worthiness in the market. The rating agency has a stable outlook based on Xerox's increased financial flexibility. At the end of last quarter, Xerox had cash and cash equivalents of $948.0 million and total debt stood at $7.5 billion.
In 2012, Xerox had also sold and issued debt of $1.1 billion that included $500 million of 2.95% debentures due Mar 2017 at a yield of 210 basis points.
Headquartered in Norwalk, Conn., Xerox is a leader in the development, manufacturing, marketing, servicing and financing of document equipment across the world. The company has three operating segments - Technology, Services and Others. Xerox serves clients in 160 countries, providing business services, printing equipment and software for commercial and government organizations.
Xerox is currently focusing more to expand its offerings through inorganic measures and new acquisitions to add more clients to its portfolio.
At present, Xerox has a Zacks Rank #4 (Sell). Other stocks that look promising in the industry and are worth a look now include Ikanos Communications, Inc ( IKAN ), Pitney Bowes Inc ( PBI ) and Ricoh Company, Ltd ( RICOY ), all carrying a Zacks Rank #2 (Buy).
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XEROX CORP (XRX): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
