Fitch affirms Avago on acquisition

Fitch Ratings said it affirmed the ratings for Broadcom Ltd.’s wholly owned subsidiary, Avago Technologies Cayman Finance Ltd. at BBB- on news that Broadcom will buy Brocade Communications Systems, Inc.

The outlook is stable.

The actions affect as much as $14.2 billion of total debt (pro forma for the transaction, as much as $20.1 billion if Broadcom funds the deal entirely with debt), including the undrawn $500 million revolving credit facility.

Fitch said it believes the acquisition of Brocade strengthens Broadcom's enterprise storage portfolio by connecting its leading positions in fiber channel integrated circuits and fiber channel host bus adapters, providing opportunities for increased penetration from significant customer overlap.

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