S&P rates Renesas notes BBB-

S&P said it assigned its BBB- long-term issue credit rating to Renesas Electronics Corp.'s planned bonds. The company plans to sell two U.S. dollar-denominated senior unsecured bonds with differing maturities.

“We equalize the rating on the bonds with our long-term issuer credit rating on Renesas Electronics. This is because the post-issuance priority debt ratio (the sum of an issuer's total secured debt and its operating subsidiaries' debt divided by the issuer's total consolidated debt) for Renesas Electronics is not so high as to significantly subordinate the bonds relative to its other debt, in our estimation,” S&P said in a press release.

The proceeds will be used to contribute to the company's financing of its acquisition of U.K.-based Dialog Semiconductor plc earlier in 2021. It is the company's first issuance of foreign currency-denominated bonds, one of which is a green bond.

The outlook is stable.

© 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.