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Moody's cuts H-P long-term debt rating to Baa1

NEW YORK (AP) -- Moody's Investors Service is lowering its long-term credit rating for Hewlett-Packard, saying the technology giant will have trouble increasing sales of many of its products.

Moody's says it lowered H-P's senior unsecured credit rating by one notch, to "Baa1" from "A3." The rating agency cites concerns that the company's finances will remain weaker than previously expected "over the immediate term."

Moody's senior vice president Richard Lane noted that about 75 percent of H-P's revenue comes from personal computers, enterprise servers, printers and services. He said those offerings "face slow to no growth prospects over the coming years."

Lane said it is uncertain whether H-P can restore growth and profitability. He said the company's revenue will likely decline next year and its profit margin will narrow.