S&P Global Ratings Downgrades Nasdaq Following Adenza Acquisition
June 12 2023 - 11:00AM
Dow Jones News
By Denny Jacob
S&P Global Ratings on Monday said it downgraded Nasdaq's
long-term issuer credit ratings and senior unsecured notes to BBB
from BBB+.
The ratings agency said the downgrade is a result of Nasdaq's
planned acquisition of Adenza, which provides capital markets and
regulatory solutions to financial institutions, for $10.5 billion
and transaction costs, including $5.75 billion in cash and the
remainder in common equity.
S&P said it expects the Adenza transaction to close within
six to nine months and for Nasdaq to raise about $5.9 billion of
new debt to fund the acquisition. The financing for the acquisition
would weaken Nasdaq's financial risk profile, S&P said.
"Nasdaq's funds from operations to debt will drop well below 23%
in the next two years, materially weaker than our previous base
case, which did not consider the Adenza acquisition," S&P
said.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
June 12, 2023 10:45 ET (14:45 GMT)
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