This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
Seagate Upgraded to IG-Status of BBB- by Fitch
March 25, 2026
Seagate Technology was upgraded to IG-status of BBB- from HY-status of BB+ by Fitch, making it a rising star. The rating agency also upgraded the senior unsecured debt of Seagate HDD Cayman and Seagate Data Storage Technology Pte Ltd. to BBB-. Seagate is a leader in the mass-capacity data storage market along with its competitor Western Digital. Both companies hold roughly half the market share in the high-capacity nearline Hard Disk Drive (HDD) market. This predominant duopoly gives Seagate strong pricing power and strategic partnerships with major hyperscale cloud customers.
The rating upgrade reflects significant debt reduction and improved profitability driven by AI infrastructure spending by other companies, thereby benefitting Seagate. Seagate cut its debt from $6bn to under $4bn following a transaction that closed in February 2026. This structural debt reduction gives it a cushion to maintain healthy leverage metrics even if AI spending were to sharply correct. The company’s profitability outlook has improved significantly, supported by a shift toward higher-margin mass capacity nearline drives, which are expected to represent around 80% of total revenue. EBITDA margins are forecast to average in the mid-30% range, up from the low-30% in prior forecasts. Seagate now plans to return nearly all of its pre-dividend free cash flow of $2–3bn annually to shareholders via buybacks and dividends.
Its bonds traded stable, with the 8.5% 2031s at 104.9, yielding 5.97%.
Go back to Latest bond Market News
Related Posts:
Sinopec Returns to the Dollar Bond Market for a Second Time in 2017
September 13, 2017
S&P Upgrades Yanlord by One Notch to ‘BB’
March 16, 2018
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.