Xerox Corp’s senior debt has been affirmed at single-A, commercial paper at A-1 and preferred stock at A-minus by Standard & Poor’s Corp. Also Xerox Credit Corp’s senior debt has been affirmed at single-A and commercial paper at A-1 and Xerox Mexicana SA de CV commercial paper at A-1. About $10,100m of debt is outstanding and the outlook is stable. The agency attributes the raings to Xerox’s core strength in document processing with success in new product introductions and the large amount of recurring revenues. The company’s divestiture of its financial service businesses will enable the company further focus on this primary business and repay associated debt. The agency expects overall liquidity, cash generation, and financial strength to remain reflective of the rating and cited the $580m stock offering, completed in June 1993, as evidence of Xerox’s commitment to credit quality. However the rating assumes that no material charges or investments are incurred related to the financial services divestitures.
