Moody's upgrades credit outlook for Lexmark
Moody's Investors Service upgraded its credit outlook for Lexmark International, saying the company has improved the quality of its printers.
Moody's affirmed Lexmark's investment-grade, "Baa3" rating and said its outlook is now "Stable" instead of "Negative." That means the agency is less likely to cut Lexmark's rating, a step that could have increased its borrowing costs.
Moody's said an improved lineup of printers as well as an overall rebound in corporate spending should help boost Lexmark's revenue in 2010.
The more printers that Lexmark customers buy, the more steady revenue it is able to generate from sales of supplies such as paper and ink.
Lexmark on Tuesday reported sharply higher first-quarter profits and the company projected net income will exceed Wall Street expectations over the next three months.
Shares of Lexmark International Inc. rose 29 cents to $40.24 in afternoon trading.