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Moody’s lowers KLA-Tencor to Baa2
Moody's Investors Service said it downgraded KLA-Tencor Corp.’s senior unsecured rating to Baa2 from Baa1 following the company's announcement that it plans to raise up to $2.5 billion of incremental debt in order to fund a $4 billion distribution to shareholders.
The outlook is stable.
The new rating reflects KLA's "more aggressive financial policy as the company raises up to $2.5 billion of incremental debt in order to distribute $4.0 billion to shareholders," Moody's senior vice president Richard Lane said in a news release.
The capital allocation plan will consist of a $2.75 billion one-time special dividend and $1.25 billion of share repurchases to be executed over the next 12 to 18 months.
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