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Moody's cuts Softbank bonds to Ba1
Moody's Japan KK said it downgraded its issuer and senior unsecured bond ratings on Softbank Corp. to Ba1 from Baa3.
The outlook is stable.
This concludes the review initiated on Oct. 15, 2012 after Softbank announced its plan to acquire 70% of the shares of Sprint Communications, Inc.
On July 11, Softbank closed the transaction at an amended price of $21.6 billion (about ¥1.8 trillion) for a total of 78% of the shares.
Moody's said the downgrade to Ba1 reflects its view that the debt-financed acquisition of Sprint will significantly weaken Softbank's financial flexibility, and the possibility that Softbank will have to extend additional finance to help Sprint execute its large capital expenditure program of $16 billion for 2013 and 2014.
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