Funding the deal entirely with debt will increase Microsoft's gross debt to EBITDA (earnings before interest, taxes, depreciation and amortization) ratio, that could pressure its credit rating, Moody's said in a statement on Monday.
Microsoft, which will buy LinkedIn in its biggest-ever deal, said it would issue new debt to fund the acquisition.Separately, Standard & Poor's affirmed its 'AAA' credit rating and stable outlook on Microsoft. "Our rating affirmation on Microsoft reflects our view that the company's acquisition of LinkedIn adds to its diversified product portfolio," S&P Global Ratings credit analyst David Tsui said.The potential Moody's ratings cut on Microsoft will leave Johnson & Johnson