Moody's eyes Ingram Micro for cut

Moody's Investors Service said it placed all its Ingram Micro Inc., including the Ba1 corporate family rating, under review for downgrade.

This action follows Platinum Equity reporting it agreed to acquire Ingram Micro from HNA Group in a transaction valued at roughly $7.2 billion, Moody’s said.

“The ratings review will focus on the sources of funding, financial leverage and ultimate capital structure resulting from the leveraged buyout. Financial policy, liquidity, the company's business strategy and deleveraging plans will also be key considerations. The review for downgrade is based on the expectation that Ingram Micro will have higher financial leverage following the acquisition given the private equity buyout. Moody's expects existing unsecured notes will be fully repaid upon transaction closing,” Moody’s said in a press release.

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