Broadcom Ltd. 'BBB-' Rating Outlook Revised To Positive On Strong Performance And Cash Flow

Semiconductor company Broadcom Ltd. has reduced adjusted leverage to 1.3x as of July 31, 2017 through substantial EBITDA growth, exceeding our previous expectation. The company plans to issue unsecured notes to primarily finance the previously announced Brocade acquisition, or if the Brocade acquisition is not completed, for general corporate purposes including any future acquisitions. We are affirming all ratings on Broadcom, including the 'BBB-' corporate credit rating, and revising the outlook to positive. We are also assigning 'BBB-' ratings to all new unsecured notes. The positive outlook reflects our expectation that Broadcom's consistent operating performance and ability to generate substantial free cash flow will provide financial flexibility for future acquisitions while operating within the 2x-3x adjusted leverage range over the

...+ Semiconductor company Broadcom Ltd. has reduced adjusted leverage to 1.3x as of July 31, 2017 through substantial EBITDA growth, exceeding our previous expectation. + The company plans to issue unsecured notes to primarily finance the previously announced Brocade acquisition, or if the Brocade acquisition is not completed, for general corporate purposes including any future acquisitions. + We are affirming all ratings on Broadcom, including the '###-' corporate credit rating, and revising the outlook to positive. + We are also assigning '###-' ratings to all new unsecured notes. + The positive outlook reflects our expectation that Broadcom's consistent operating performance and ability to generate substantial free cash flow will provide financial flexibility for future acquisitions while operating within the 2x-3x adjusted leverage range over the next two years. NEW YORK (S&P Global Ratings) Oct. 10, 2017--S&P Global Ratings today affirmed its ratings, including the '###-' corporate credit...

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