U.S.-based software provider Salesforce Inc.’s recent string of business acquisitions and its $25 billion debt-funded share buyback have led to a rise in net debt. S&P Global Ratings expects Salesforce’s capital allocation strategy will prioritize growth acquisitions. Considering its revenue growth target, this raises the risk of further transactions and a rising net debt-to-EBITDA ratio over the next two years. We lowered our ratings on Salesforce, including our issuer credit rating to ‘A’ from ‘A+’. The stable outlook is based on our expectation that the company will operate with leverage below 2.5x and maintain its leading market position, despite evolving technology shifts and emerging competitive risks. Salesforce’s capital allocation priorities indicate a shift to a higher leverage tolerance. Following Salesforce’s
