Medtronic, Inc. -- Moody's puts Medtronic's A2/P-1 ratings on review for downgrade based on new financing plan

New York, October 03, 2014 -- Moody's Investors Service placed the ratings of Medtronic, Inc. under review for downgrade following its announcement that it plans to alter the financing of its $42.9 billion acquisition of Covidien plc following the US Treasury's proposed change in regulations regarding tax inversion transactions. While the purchase price and use of equity will remain the same, Medtronic will be limited in its ability to tap into its overseas cash via an intercompany loan. As a result, Medtronic now plans to borrow an additional $13.5 billion in external debt on top of approximately $2.8 billion of new debt originally contemplated.

Vollständigen Artikel bei Moodys lesen