Fitch rates Broadcom loans BBB, cuts CA

Fitch Ratings said it affirmed the ratings for Broadcom Inc. and its wholly owned subsidiary Broadcom Cayman Finance Ltd. at BBB after closing the CA, Inc. acquisition.

The agency also removed CA from rating watch negative and downgraded the company's ratings to BBB from BBB+.

Fitch also assigned BBB ratings to Broadcom's new $23 billion senior unsecured credit facilities, consisting of $9 billion of three-year term loans, $9 billion of five-year term loans and a $5 billion undrawn revolving credit facility.

The agency revised the outlook to negative from stable.

“The ratings and outlook reflect Broadcom's shift in FCF usage priorities to stock buybacks from debt reduction and, as a result, the potential that the company will not return total leverage below 2.5x within 12-24 months of closing the CA acquisition,” Fitch said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.