Deals
SoftBank’s $120 Billion Debt Nears Moody’s Downgrade Trigger
- Firm’s purchase of chipmaker ARM becomes effective Sept. 5
- Mobile carrier leverage is rising more than expected: Moody’s
Why Moody's May Be Ready to Pull the Trigger on SoftBank
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SoftBank Group Corp.’s debt -- which is set to swell as its latest global acquisition becomes effective on Monday -- is nearing a level at which Moody’s Investors Service has said it will consider a rating downgrade.
The Japanese wireless carrier’s purchase of British semiconductor designer ARM Holdings Plc for about $32 billion looks set to add to group debt, which at $115 billion on March 31 is five times its adjusted earnings, according to Moody’s. The rating company says any sustained climb above 5.5 times could be a “downward trigger” on its evaluation.