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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
TECHNOLOGY
New Profile: A3[N]/A-[S] (S&P affirmed last week)
- 2024 M&A spending seen at USD 8.7bn on the back of the announced USD 6.4bn Hashicorp acquisition which surpasses the expected USD 6bn FCF. Marks a shift from conservative financial strategies by funding M&A through debt.
- Move seen as extending the timeframe for Moody’s adj-debt to EBITDA to go <3x from 2.8x at FY23. Now seen improving towards 3x within two years of deal closure while adj-EBITDA margins are seen remaining in the mid-20% range.
- Upgrade possible if IBM maintains mid-single digit revenue growth, EBITDA margins above mid-20% range, and adj-debt to EBITDA in the low 2x range.
- Downgrade possible on expectation of adj-debt to EBITDA above the mid-3x range in 2025 with view that further deleveraging towards 3x by 2026 is unlikely. Also if cash declines meaningfully before mid-2x leverage is attained.
- EUR spreads muted and broadly in line with peers both today and since Q1 earnings and Hashicorp announcement.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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