S&P puts Qualcomm on watch

S&P said it placed Qualcomm Inc.’s A+ long-term and A-1+ short-term corporate credit ratings on CreditWatch with negative implications, along with its A+ senior unsecured debt rating.

The negative watch follows news that Qualcomm entered into an agreement to acquire NXP Semiconductors NV for a total consideration of $47 billion, S&P said.

Qualcomm is planning to fund this transaction through a combination of roughly $31 billion in cash and $11 billion in new debt, the agency said.

The acquisition will use of much of Qualcomm's significant overseas cash balances, but the company is expected to maintain sufficient liquidity through the transaction and beyond given its strong cash flow, S&P explained.

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