Moody's affirms Nasdaq OMX

Moody's Investors Service said it affirmed Nasdaq OMX's Baa3 long-term issuer rating, and stable outlook, after the company announced plan to raise $370 million of new debt to finance a share buyback.

The ratings reflect its ability and stated commitment to reduce cash-flow leverage to less than 3x, Moody's said.

The company announced that it intended to raise $370 million of new debt to partially finance the buyback of $497 million of its outstanding shares from Borse Dubai, the agency said. The transaction will increase its debt-to-EBITDA ratio to 3.2x from 2.7x, Moody's said.

This increase in leverage is both relatively modest and temporary, the agency said.

Its cash flow generation should enable it to manage its debt level to be in keeping with an investment-grade credit profile, Moody's added.

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