Moody’s downgrades Broadcom

Moody's Investors Service said it downgraded the senior unsecured rating of Broadcom Corp. to Ba2 from A2 following the closing of Broadcom's purchase by Avago Technologies Ltd.

This concludes a review for downgrade initiated on May 28, 2015.

The outlook is positive.

The remaining senior unsecured notes of Broadcom that were not tendered will not be guaranteed by Broadcom Ltd. (parent company of merged Avago and Broadcom entities), nor will the holders of Broadcom Corp.’s senior unsecured notes be party to any collateral agreement. As a result, the Broadcom notes are rated one notch below Avago Technologies Cayman Finance Ltd.'s corporate family rating.

Moody’s does not expect Broadcom Ltd. to file separate, audited financial statements of Broadcom Corporation. As a result, the agency believes that it has inadequate information to maintain the rating and will withdraw Broadcom Corp.’s ratings.

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