Moody’s: SoftBank notes Ba1

Moody’s Investors Service said it assigned a provisional Ba1 rating to the proposed senior unsecured euro- and dollar-notes to be issued by SoftBank Group Corp.

The outlook is stable.

The notes will be guaranteed by SoftBank Corp., formerly SoftBank Mobile Corp., the primary operating vehicle that engages in mobile and fixed-line telecommunication businesses and generating more than half of the group’s reported consolidated EBITDA for the 2015 fiscal year, Moody’s said.

Despite its high leverage with an adjusted gross debt-to-EBITDA ratio of 5.5x in the third quarter of 2015, SoftBank’s rating is supported by a significant degree of financial flexibility, which includes its maintenance of large amounts of cash on hand and unrealized gains from investments led by Alibaba Group Holding Ltd., the agency said.

The ratings also reflect the acquisitive nature of the company to expand its business globally, Moody’s said.

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