Moody’s changes Qualcomm to stable

Moody's Investors Service said it confirmed the A1 senior unsecured ratings of Qualcomm Inc. and changed the outlook to stable.

This concludes the review for downgrade initiated on Oct. 27, 2016 following the announcement that Qualcomm agreed to acquire NXP Semiconductors NV (parent of NXP BV, which has a Ba1 corporate family rating currently under review for upgrade) in an all-cash deal for an enterprise value of $43 billion.

Both boards approved the transaction which, subject to regulatory approvals and other closing conditions is expected to close in calendar 2017.

Moody’s said the stable outlook reflects expectations that, notwithstanding the current disputes, Qualcomm will maintain its very strong and profitable global market position in 3G, 4G and 5G wireless technologies, sustain a strong and broad applications processor and chipset offering and product roadmap and steadily reduce leverage while maintaining strong liquidity.

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