Moody’s reviews Altera

Moody's Investors Service said it placed Altera Corp.’s Baa1 senior unsecured rating under review for upgrade following the announcement that Intel Corp. plans to acquire Altera for $16.7 billion.

Both boards of directors approved the transaction, and subject to Altera's shareholder vote and customary regulatory and closing conditions, Intel expects the acquisition to close in six to nine months.

Moody’s said the outcome of the Altera review will depend on the nature of the support provided by Intel. If Intel provides a direct, unconditional guarantee of Altera's bonds, those bonds would be rated the same as Intel's A1 rating. Without such a guarantee, Altera's bonds would likely be rated A2, or one notch lower than Intel, reflecting the lack of a legally enforceable guarantee.

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