Moody’s assigns Ba1 to GameStop notes

Moody's Investors Service said it assigned a Ba1 rating to GameStop Corp.’s proposed $400 million senior unsecured notes.

There is no impact on the Ba1 corporate family rating, SGL-1 speculative grade liquidity rating or stable outlook.

"We believe the bulk of the proposed debt issuance will fund tactical acquisitions, with GameStop indicating it was in the process of acquiring two AT&T resellers with a combined total of between 450-500 locations," Moody's vice president Charlie O'Shea said in a news release.

"These potential acquisitions are in line with our view that GameStop is prudently diversifying its business. We believe pro forma metrics will initially weaken due to this, however will remain well within our band of tolerance for the rating."

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