Fitch lowers Broadcom

Fitch Ratings said it downgraded the ratings for Broadcom Inc. and its wholly owned subsidiaries, Broadcom Cayman Finance Ltd. and CA, Inc., to BBB- from BBB.

Fitch also revised Broadcom's outlook to stable from negative.

The agency said the actions reflect Fitch's expectation that Broadcom's credit protection measures will remain weaker than previously anticipated.

“The company continues to focus its significant FCF on shareholder returns rather than reducing debt incurred to fund the CA acquisition,” Fitch said in a news release.

“Incremental acquisitions may also be at least partially debt-funded, causing total leverage (total debt to operating EBITDA) to remain in the 2.5x-3x range rather than below 2.5x, as previously anticipated.”

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