Fitch might downgrade CA

Fitch Ratings said it placed the BBB+ ratings for CA, Inc.'s long-term issuer default rating and its other ratings on rating watch negative.

The agency said the action follows the company's announcement to be acquired by Broadcom Ltd. for $18 billion in an all cash transaction.

Fitch said the ratings reflect CA's stand-alone credit profile, while the rating watch negative reflects the incremental debt the merged entity would need to incur to finance the transaction that will result in higher leverage than CA's current standalone leverage.

The agency said it also considers the uncertainties around the strategic values of the merger.

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