Moody's confirms Xilinx unsecured rating

Moody's Investors Service said it confirmed Xilinx, Inc.’s A3 senior unsecured ratings. The outlook is stable.

This rating action concludes the review for downgrade started on Oct. 28, following the announcement that Xilinx agreed to be acquired by Advanced Micro Devices, Inc. in an all-stock transaction valued at about $35 billion, Moody’s said.

Both boards of directors have approved the transaction and, subject to regulatory and other approvals.

“The confirmation reflects expectations that Xilinx's operational performance will remain steady over the next year during which time regulatory authorities continue the approval process of the pending acquisition of Xilinx by AMD. If the acquisition is not approved, we expect Xilinx's competitive position and financial policies will continue to support an A3 senior unsecured rating. While AMD has not said whether it would guarantee the existing Xilinx debt if the acquisition is approved, we expect the scale and diversification benefits could support an A3 senior unsecured rating for the combined entity,” the agency said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.