S&P raises Broadcom

S&P said it raised its ratings on Broadcom Inc. and its debt to BBB from BBB-.

The upgrade follows Broadcom closing its VMware Inc. acquisition, the agency said.

“We expect the transaction to increase Broadcom's 2023 adjusted debt to EBITDA to low-2x on a pro forma basis. Estimated free cash flow near $23 billion in fiscal 2024, and higher in fiscal 2025, will likely enable the company to decrease leverage over the next two years while providing sufficient capacity to continue shareholder returns and acquisitions,” S&P said in a statement.

The outlook is stable.

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