UPDATE 1-Moody's reviews Microsoft credit rating for cut after LinkedIn deal

June 13, 2016 7:43 PM

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June 13 Rating agency Moody's placed Microsoft Corp's 'AAA' credit rating under review for downgrade following the software giant's deal to buy LinkedIn Corp for $26.2 billion, citing concerns that it would be funded through new debt.

Funding the deal entirely with debt will increase Microsoft's gross debt to EBITDA (earnings before interest, taxes, depreciation and amortization) ratio, that could pressure its credit rating, Moody's said in a statement on Monday. (bit.ly/235od7e)

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