Qualcomm (QCOM) Ratings Placed on CreditWatch Negative by S&P Amid NXP Semi Deal

October 27, 2016 12:04 PM EDT

Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.

S&P Global Ratings placed its ratings on San Diego-based semiconductor manufacturer Qualcomm Inc. (Nasdaq: QCOM), including its 'A+/A-1+' long- and short-term corporate credit ratings and 'A+' senior unsecured debt rating on CreditWatch with negative implications. The CreditWatch placement follows Qualcomm's announcement that it has entered into an agreement to acquire Netherlands-based semiconductor manufacturer NXP Semiconductors N.V. for a total consideration of $47 billion.

Qualcomm is planning to fund this transaction through a combination of roughly $31 billion in cash and $11 billion in new debt.

"The acquisition will use of much of Qualcomm's significant overseas cash balances, but we expect the company to maintain sufficient liquidity through the transaction and beyond given its strong cash flow," said S&P Global Ratings credit analyst Andrew Chang.

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In

Related Categories

Credit Ratings

Related Entities

Standard & Poor's, Definitive Agreement

Add Your Comment