S&P Says It Expects To Cut Electronic Arts to Junk Status

S&P Global Ratings has announced that it expects to downgrade Electronic Arts Inc.'s credit ratings to junk status once the company's buyout deal is completed. This decision is based on the anticipated addition of approximately $20 billion in debt from the transaction. The downgrade will result in Electronic Arts' credit ratings falling below investment-grade, which is typically considered a riskier investment. This move reflects S&P's assessment that the increased debt burden from the buyout will negatively impact the company's financial profile and creditworthiness. The decision comes as Electronic Arts, a major player in the video game industry, is set to undergo a significant acquisition that will have a substantial impact on its overall financial standing. The company's ability to manage this increased debt load and maintain its competitive position in the market will be closely monitored by credit rating agencies and investors alike.