) 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
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
Xerox is currently focusing more to expand its offerings through
inorganic measures and new acquisitions to add more clients to
At present, Xerox has a Zacks Rank #4 (Sell). Other stocks
that look promising in the industry and are worth a look now
Ikanos Communications, Inc
Pitney Bowes Inc
Ricoh Company, Ltd
), all carrying a Zacks Rank #2 (Buy).
IKANOS COMM INC (IKAN): Get Free Report
PITNEY BOWES IN (PBI): Free Stock Analysis
RICOH LTD ADR (RICOY): Get Free Report
XEROX CORP (XRX): Free Stock Analysis Report
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