Broadcom's (BRCM) Ratings Not Affected by Baseband Business Exit - Moody's

Moody's says Broadcom's (Nasdaq: BRCM) A2 senior unsecured rating will not be affected by the company's credit positive announcement that it will exit the cellular baseband business, either through a sale or a wind-down the business. The outlook is stable.

The cellular baseband business will account for an estimated $200 million to $250 million of revenue in the first half of 2014, or about six percent of Broadcom's total revenue. High investment requirements, strong competition, and limited uptake on new products, however, contribute to material losses that we estimate at $90 million per quarter.

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