Moody’s applies Aa2 to Alphabet bonds

Moody's Investors Service said it assigned an Aa2 rating to Alphabet Inc.'s proposed bond offering of benchmark size.

The new notes will rank equally with the company's other senior unsecured obligations.

The company plans to use net proceeds for general corporate purposes, including repayment of amounts outstanding under its commercial paper program.

Because the company will be using a portion, if not all, of the proceeds from the notes issuance for repayment of commercial paper borrowings, Moody’s said it expects the transaction will be essentially leverage-neutral. Accordingly, the agency doesn't expect the transaction to impact Alphabet's credit profile or its Aa2 senior unsecured long-term debt rating.

The outlook is stable.

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