S&P cuts IBM debt rating following Red Hat acquisition

S&P cuts IBM debt rating following Red Hat acquisition

5 years ago
Anonymous $ZPWJA6-QD2

https://phys.org/news/2018-10-sp-ibm-debt-red-hat.html

"The rating downgrade reflects prospective changes in IBM's debt leverage," S&P said in a statement. "IBM will issue substantial debt to fund the acquisition of Red Hat."

The computing giant could face another downgrade if it underperforms the expected low single-digit growth in revenues.