Moody’s Says It’s Likely to Cut Electronic Arts, Following S&P
Electronic Arts agreed to be bought by an investor group including Silver Lake Management, Saudi Arabia’s Public Investment Fund and Affinity Partners.
Photographer: Patrick T. Fallon/BloombergMoody’s Ratings expects to downgrade Electronic Arts Inc. by multiple notches after the videogame maker is taken private, a day after S&P Global Ratings took the same preliminary step.
The firm was put on review for downgrade by Moody’s on Tuesday, which like S&P a day earlier cited the $20 billion of debt financing already committed for EA’s buyout. Moody’s currently has the firm at Baa1, three steps above junk territory.