WASHINGTON (Sputnik) — "Moody's Investors Service ("Moody's") placed the Aaa senior unsecured rating of Microsoft Corporation under review for downgrade following the announcement today that the company has agreed to buy LinkedIn Corporation for $26.2 billion in cash," Moody’s stated.
The rating agency noted, however, that the potential downgrade would be limited "to one notch."
Earlier on Monday, Microsoft revealed an agreement to buy LinkedIn, but said the social media service would not lose its independence despite the acquisition.
Moody's said its review will focus on the monetization software opportunities LinkedIn could receive after the deal is completed.
"An additional consideration will be Microsoft's capital allocation plans and the potential need to raise debt to support shareholder returns," Moody’s said.
The deal is expected to close before the end of 2016, according to Microsoft.
