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Friday, June 12, 2009|
BGI Deal Prompts Cut in BlackRock's S&P Rating
Standard & Poor's cut BlackRock's debt rating by a notch on the heels of the New York money manager's deal to acquire Barclays Global Investors, Reuters reports. BlackRock's long-term ratings fell one level to A-plus and its short-term ratings dropped to A-1.
The drop reflects concerns about the company's refinancing risks, as the $13.5 billion deal would would add approximately $3 billion in debt to BlackRock's balance sheet.
S&P's outlook is negative, suggesting the possibility of additional downgrades.
We believe the overall debt burden is moderate, but initial credit metrics for the combined organization place BlackRock into the A rating category rather than the AA category, Reuters quoted S&P as saying.
Printed from: MFWire.com/story.asp?s=21795
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