Standard & Poor's, an international rating agency, has recently cut the credit rating of Dell Inc. At this point, the company’s stock is at a non-investment level “BB-“. The previous level is “BBB”. The decline is said to result from Michael Dell’s decision to purchase the stock back at the expense of lent money.
Dell and Silver Lake Partners are expected to close the deal in October 2013. The estimated cost of the deal is $25bn. S&P’s forecast for rating of Dell is “stable”.
The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of Dell’s stock. The price has lost 5,4% so far.
