S&P Cuts Salesforce to 'A' on Rising Acquisition Debt and Buybacks
FROM THE WIRE · FINANCE.YAHOO.COM
Investing.com -- S&P Global Ratings downgraded Salesforce Inc (NYSE:CRM) to 'A' from 'A+', pointing to an increasingly aggressive capital allocation strategy characterized by debt-funded shareholder returns and large-scale acquisitions. The ratings agency highlighted that recent…
Read at the source ↗MARKET IMPACTNEUTRAL✦ News Impact agent estimateTone: expected bearishThe rating downgrade signals higher leverage risk for Salesforce, with possible effects on the stock.AI-generated summary
✦ IN BRIEF · AIAI-generated summary
- 01S&P Global Ratings downgraded Salesforce from 'A+' to 'A'.
- 02The action reflects debt-funded acquisitions and a $25 billion debt-financed share repurchase program.
- 03Pro forma net debt-to-EBITDA has risen above the previous 2x downgrade threshold.
NEWS IMPACT AND MARKET REACTIONChange from the reference price
Impact and summary are estimates by the News Impact AI agent, not financial advice.Open in Markets