S&P upgrades Palm credit rating | webOS Nation

S&P upgrades Palm credit rating

by Derek Kessler Wed, 28 Oct 2009 8:59 pm EDT

Standard & Poor

Standard & Poor’s Ratings Services has upgraded Palm’s credit rating to the level of CCC+, a single notch away from no longer being considered a dangerous speculative play in the stock market. The upgrade comes as a result of Palm’s expanding webOS portfolio (with the Pixi on the way in less than three weeks) and the company’s recent secondary stock offering that raised some $360 million for operations.

A CCC+ rating is considered to still be in the highly speculative realm where the company is deemed to be highly sensitive to economic conditions. Given the current state of the global economy, it is little surprise that Palm is considered by analysts to be at the consumer’s whim. Even so, S&P believes that so long as the economy doesn’t turn incredibly sour, Palm’s chances of long-term success are good, even with a significant amount of Palm’s debt coming due in 2014. The CCC+ is still a long way from the gold star AAA rating that cash-flush competitors Google, Apple, and Research in Motion enjoy. The credit rating serves to quantify the risk that lenders take on by extending credit or loans to a company.

Despite the upgrade, Palm stock was down again today, tumbling another 5.9% after dropping 6.3% yesterday. For this week alone, shares of Palm are down 15.6%, and for all of October PALM has slipped a painful 28%.