S&P Places Computer Sciences (CSC) Ratings on CreditWatch Negative Amid Hewlett-Packard Deal

S&P Global Ratings said it placed all of its ratings, including its 'BBB' corporate credit rating, on Computer Sciences Corp. (NYSE: CSC) on CreditWatch with negative implications.

"The CreditWatch placement follows CSC's announcement that it has agreed to merge with HPE's ES business," said S&P Global Ratings credit analyst Jenny Chang.

CSC intends to fund the transaction with approximately $3.4 billion of new debt, including the assumption of about $1.9 billion of HPE's existing debt, and new equity. The transaction is subject to regulatory approvals and the approval of shareholders and is expected to close by the end of March 2017.

We will resolve the CreditWatch status once the transaction between CSC and ES is closed, at which time we will likely lower our rating on CSC by no more than one notch and lower the commercial paper rating to 'A-3'.

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