Moody’s reviews Hasbro for downgrade

Moody's Investors Service said it placed Hasbro Inc.’s Baa1 ratings on review for downgrade after the company said it entered pact to acquire Entertainment One Ltd. for about $4 billion.

Hasbro plans to fund the acquisition with about $3 billion to $3.25 billion of debt.

“Moody's expects that if the deal closes and is funded as contemplated, that Hasbro's senior unsecured rating would be downgraded by at least one, but not more than two notches,” the agency said.

The review will look at financial policy and deleveraging plans for the combined company among other issues, Moody’s said.

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