Form 10-Q Motorola Solutions, Inc. For: Jul 04

Go back to Form 10-Q Motorola Solutions, Inc. For: Jul 04

Moody's Cuts Motorola Solutions' (MSI) Unsecured Rating to 'Baa3'; Outlook Lowered to Negative

August 5, 2015 11:23 AM EDT

Moody's Investors Service ("Moody's") downgraded Motorola Solutions (NYSE: MSI) senior unsecured rating to Baa3 from Baa2. The downgrade was driven by the proposed $1 billion increase in debt and $2 billion share repurchase plan. The ratings outlook was changed to negative from stable.

Ratings Rationale

The Baa3 senior unsecured rating reflects high leverage pro forma for the convertible note issuance and relatively aggressive financial policies . The rating is supported by MSI's very strong business profile which to some degree mitigates the high leverage. MSI's pro forma leverage would however be an outlier among Baa rated... More