trending Market Intelligence /marketintelligence/en/news-insights/trending/_49qgsbpott8kgtcwyh41g2 content esgSubNav
In This List

S&P places Qualcomm on CreditWatch negative after sweetened NXP bid

Blog

Global 5G Survey: Operators push past COVID-19 to accelerate 5G network upgrades

Blog

Banking Essentials Newsletter 2021: December Edition

Blog

Avoid Unwanted Counterparty Risk Exposure: Five Steps to Take in 2022

Blog

Investment Banking Essentials Newsletter 2021: December Edition


S&P places Qualcomm on CreditWatch negative after sweetened NXP bid

S&P Global Ratings has placed its ratings on Qualcomm Inc. on CreditWatch with negative implications after the semiconductor manufacturer raised its offer for NXP Semiconductors NV to $127.50 per share from $110.00.

The new offer will raise the transaction value by about $6 billion and could result in a higher level of leverage than initially expected, S&P said. Leverage should decline to the near mid-2x range within two years of closing, compared to the initial estimate of less than 2x, it said.

S&P expects to lower its corporate credit rating on Qualcomm by one notch from A if the transaction closes. The rating agency said the higher offer and one remaining regulatory approval has raised the likelihood of closing.

The placement on CreditWatch is also based on the uncertainty around Qualcomm's overall business outlook due to ongoing disputes with Apple and an unnamed licensee and overall pressure on the company's technology licensing business, the rating agency said. Regulatory and legal risks have intensified in recent years against the backdrop of slow growth in the smartphone industry and a highly competitive environment, it said.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.