Moody's: CA on downgrade review

Moody's Investors Service said CA, Inc.'s Baa2 senior unsecured rating remains under review for downgrade.

Broadcom, Inc. is acquiring CA for about $18.9 billion, Moody's explained.

The acquisition will be funded with cash on hand and about $18 billion in new debt.

Broadcom has not announced whether it will pay off existing CA debt, whether it will guarantee the debt if left outstanding or articulated financial policies for CA after closing, Moody's explained.

Broadcom has received all required approvals and plans to close the deal Nov. 5, the agency noted.

The review will focus on the amount of CA debt remaining in the capital structure, extent of support from Broadcom including any guarantees and expected financial policies for CA after closing, Moody's said.

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