S&P Global Ratings on Aug. 23 placed Hasbro Inc. on CreditWatch with negative implications following the U.S. toymaker's proposal to buy Entertainment One Ltd. for approximately $4 billion in cash.
Hasbro, which manufactures Play-Dohs, Nerf blasters and My Little Pony toys, is planning to issue a mix of debt and equity to fund its purchase of the Canadian independent film and TV content producer and distributor.
Ratings said it placed Hasbro's BBB issuer credit and senior unsecured ratings, as well as its A-2 commercial paper rating on CreditWatch Negative to reflect the uncertainty regarding the amount of debt and equity to finance the deal.
The rating agency said it plans to resolve the CreditWatch once it is able to assess the mix of debt and equity upon the completion of the financing for the transaction.
Fitch Ratings also took a similar action on Hasbro and placed the company on Negative Watch, saying the planned acquisition would materially increase Hasbro's leverage profile.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.
