Moody's: IBM unchanged

Moody's Investors Service said that International Business Machines Corp.'s senior unsecured debt rating of A1 and prime-1 short-term rating will not be affected by news that the company will acquire Netezza for $1.7 billion in cash.

Subject to standard conditions, the transaction is expected to close in the fourth quarter of 2010, Moody's said.

The proposed acquisition represents a good strategic addition to IBM's existing business analytics software efforts and highlights IBM's increasing focus on its software analytics capabilities, the agency said.

IBM can easily fund the Netezza transaction from cash balances or by tapping its bank facilities or the commercial paper market, Moody's added.

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