Moody's: Nasdaq to negative

Moody's Investors Service said it changed the outlook to negative from stable for Nasdaq OMX Group Inc. (senior Baa3) following its announcement of an unsolicited takeover bid for NYSE Euronext, Inc.

Nasdaq is bidding for NYSE in conjunction with IntercontinentalExchange Inc., the agency said. The bid is intended to break up the merger agreement between Deutsche Borse and NYSE (A3/positive).

The $11.3 billion takeover contemplates Nasdaq acquiring the cash trading and listing, information services and technology businesses of NYSE.

The negative outlook reflects the uncertainty as to whether or not the transaction will be completed, the agency said. Furthermore, the transaction would create a spike in cash flow leverage.

Nasdaq has a history of aggressively leveraging the firm, which raises concerns about management's financial policy and commitment to an investment-grade credit profile in a consolidating industry, the agency added.

© 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.