<div id="readability-page-1"><div>Fitch Ratings-New York-02 December 2025:Fitch Ratings has assigned a 'BBB-' rating to DXC Capital Funding DAC's proposed senior unsecured notes. The bonds will rank pari passu with the existing debt, and proceeds will be used to refinance the company's bonds maturing 1Q26.DXC's ratings are supported by its strong FCF and liquidity as well as its proactive approach to maintaining a relatively conservative balance sheet. In prior years, the company voluntarily reduced its total debt, and Fitch expects the company will focus on maintaining its investment-grade rating over the near to medium term.Fitch has withdrawn the ratings for DXC Technology Company's bonds published on Nov. 13, 2025. The company cancelled the U.S. bond offering in favor of an offering in Europe.Key Rating DriversOngoing Revenue Decline: DXC's revenues have declined for more than six years, despite growth in global spending for technology. The company's most recent quarterly results continued this trend. It is unclear when DXC will be able to stabilize its business or return to growth. Fitch expects the company to continue generating good FCF and maintaining lower leverage for the next several years. These credit positives will allow DXC to maintain its rating in the near to medium term.Financial Policy: DXC has reiterated its commitment to an investment-grade profile with EBITDA leverage below 2.0x. The company has signaled willingness to use its cash for debt reduction over the next several years. DXC's credit metrics remain strong, demonstrating fiscal discipline by repaying debt with a portion of FCF, suspending its dividend and lowering its share buybacks relative to prior periods. Fitch expects DXC to maintain a conservative financial policy and investment-grade credit metrics for the near to medium term.Profit Margin Improvement: DXC achieved an EBITDA margin slightly above 14% for FY 2024 and 2025, marking its best performance in recent years. Fitch expects the improvement to moderate or end, since cost-cutting measures cannot persist indefinitely, and a portion of the margin improvement also came from divestitures. The margin expansion is a credit positive, but margins may compress if the company invests for growth.Uneven Demand: Over the longer term, Fitch expects technology spending and demand for outsourcing to continue growing. However, short-term demand appears uneven as enterprise technology leaders grapple with the implications of machine learning/AI developments. It is not yet clear how this affects DXC, but cautious technology spending by many enterprise clients is likely to be another headwind. It is also unclear if DXC has the right mix of service offerings to remain competitive for the highest value technology projects.Leverage Stabilization: EBITDA leverage dropped from 3.0x in FY 2021 to 2.1x in FY 2025, due to overall debt reduction. The company's record of voluntary debt reduction is a credit positive, and the 2026 maturities provide opportunities to continue reducing debt. The Fitch base case assumes relatively strong FCF, which means management should have flexibility to reduce debt. Fitch expects the company will maintain its leverage close to 2.0x.Peer AnalysisDXC's rating reflects its weaker operating position and financial profile relative to HCL Technologies Limited (A-/Stable), Tata Consultancy Services (A/Stable), and Wipro Limited (A-/Stable). These outsourcing providers have typically been growing their revenue base while maintaining stable margins. Kyndryl (BBB/Stable) has a similar operating profile to DXC with lower absolute debt and leverage.The outsourcing providers HCL, Tata, and Wipro maintain more conservative balance sheets than DXC and Kyndryl. They typically have net cash positions or near-zero net leverage and low gross leverage, specifically: HCL with 0.1x net leverage, Tata with no debt, and Wipro with 0.9x net leverage.Fitch’s Key Rating-Case Assumptions--Revenue decline in FY 2026 of about 5%, improving to negative 3% in 2027 and negative 2% in 2028;--EBITDA margin held steady at current levels;--Working capital slightly better over time as the company continues to improve its cash conversion;--Bonds are refinanced partially with cash as they mature, resulting in total debt declining in 2026;--Share buybacks as a use of excess cash.RATING SENSITIVITIESFactors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade--EBITDA leverage sustained above 3.0x;--Ongoing revenue declines;--FCF sustained below 3%.Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade--Sustained positive organic revenue growth, while maintaining EBITDA margins;--FCF margin sustained above 5%;--EBITDA leverage sustained below 2.5x.Liquidity and Debt StructureDXC's liquidity is adequate and supported by $1.9 billion in cash and cash equivalents as of Sept. 30, 2025, as well as the undrawn $3 billion revolver. Fitch anticipates that the company will generate more than $500 million in FCF over the next several years.DXC's debt consists of fixed-rate, senior unsecured bonds, a revolving credit facility (undrawn) and a commercial paper program. Fitch assumes DXC will maintain debt near $4 billion by its calculation (Fitch excludes finance leases but adds accounts receivable securitization borrowings).Issuer ProfileDXC Technology is an IT services provider with approximately 120,000 employees in more than 60 countries.Date of Relevant Committee 28-Aug-2025 REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Click here to access Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in our credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG ConsiderationsDXC Technology Company has an ESG Relevance Score of '4' for Management Strategy due to the company's shortfall in execution of its strategy to achieve growth in its digital offerings that offsets legacy IT services offering declines, compounded by the decision to divest substantial portions of its business providing reduced scale and flexibility, which has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors.The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.DXC Capital Funding DAC----senior unsecured; Long Term Rating; New Rating; BBB-DXC Technology Company----senior unsecured; Long Term Rating; Withdrawn; WDContacts:Primary Rating AnalystKent Reynolds,Director+1 212 908 0668kent.reynolds@fitchratings.comFitch Ratings, Inc.33 Whitehall StreetNew York, NY 10004Secondary Rating AnalystJason Pompeii,Senior Director+1 312 368 3210jason.pompeii@fitchratings.comCommittee ChairpersonAlen Lin,Senior Director+1 312 368 5471alen.lin@fitchratings.comMEDIA RELATIONS: Eleis Brennan, New York, Tel: +1 646 582 3666, Email: eleis.brennan@thefitchgroup.comAdditional information is available on www.fitchratings.comApplicable ModelNumbers in parentheses accompanying applicable model(s) contain hyperlinks to criteria providing description of model(s).Corporate Monitoring &amp; Forecasting Model (COMFORT Model), v8.2.0 (1)ADDITIONAL DISCLOSURESSolicitation StatusAdditional Disclosures For Unsolicited Credit RatingsEndorsement StatusEndorsement PolicyALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. 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Fitch Ratings has assigned a 'BBB-' rating to DXC Capital Funding DAC's proposed senior unsecured notes, intended to refinance bonds maturing in 1Q26. DXC's strong free cash flow and liquidity support its investment-grade rating. Despite ongoing revenue decline, DXC maintains a conservative financial policy with EBITDA leverage below 2.0x. Fitch expects DXC to sustain its credit metrics and leverage stabilization, while facing uneven demand and competitive challenges. The company's liquidity is backed by $1.9 billion in cash and a $3 billion revolver.

Fitch Rates DXC Capital Funding DAC's Proposed Bond Issuance 'BBB-'