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Bulletin: Microsoft Corp. Ratings Unaffected By Announced Agreement To Acquire Skype Global S.a.r.l.
Standard & Poors, May 2011
Abstract
NEW YORK (Standard & Poor's) May 10, 2011--Standard & Poor's Ratings Services said today that its ratings and outlook on Redmond, Wash.-based Microsoft Corp. (AAA/Stable/A-1+) and Luxembourg-based Internet communications company Skype Global S.a.r.l. (B+/Stable/--) remain unchanged following the announcement that Microsoft has signed a definitive agreement to acquire Skype in a cash-based transaction valued at $8.5 billion. We expect that Microsoft will fund the acquisition from its robust cash balances (exceeding $50 billion on March 31, 2011), and we also expect Microsoft to retire all of Skype's outstanding debt, including the senior secured credit facility ('B+'; recovery rating '4'). Skype had about $760 million of outstanding debt as of March 31, 2011. We expect to withdraw the corporate credit rating...
Companies mentioned in this report are: Microsoft Corp.,Skype Global S.a.r.l.
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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