Moody's cuts Altera to Baa1

Moody's Investors Service said it lowered Altera Corp.'s senior unsecured rating to Baa1 from A2 following the company's announcement that it plans to raise up to $1 billion of debt in order to repurchase stock.

This concludes a review initiated on Aug. 29.

The outlook is stable.

The new rating reflects Altera's "more aggressive financial policy as the company raises up to $1 billion of incremental debt in order to repurchase stock," Moody's senior vice president Richard Lane said in a news release.

In August, Altera's board of directors increased the company's share repurchase authorization by an additional 30 million shares to a total of 41.1 million shares, which should accommodate Altera's share repurchase objectives through mid-2015.

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