"You have the prospect of pretty dramatic stimulus by our government," Dell said. The Bush administration proposes an economic stimulus package costing US$60 billion to US$75 billion.
Dell Chief Operating Officer Kevin Rollins said that he was "perplexed" that Moody's Investors Service downgraded Dell's credit outlook on concern that price cuts may hurt sales and profitability. Dell's business is more stable now than it has been in about two years, he said.
Moody's cut Dell's credit estimate to "stable" from "positive" yesterday, blaming lower demand and price competition. The change affects about US$500 million in Dell debt.
Moody's cited Dell's US$4.5 billion in cash as of August for ``preserving strong financial flexibility." Dell has announced plans to fire as many as 5,700 workers this year in an effort to reduce costs and preserve profit as PC prices tumble.
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