NEW YORK (AP) -- Moody's Investors Service is considering a possible downgrade of NCR Corp.'s credit because of the company's plan to take on more debt to finance its proposed $650 million purchase of Retalix Ltd.
The review announced Thursday is expected to be completed within a month. If it takes action, Moody's said it probably will lower the ratings on all of NCR's outstanding debt by one notch on its scale.
NCR, which makes ATMs and self-service checkout machines, disclosed its agreement to buy Retalix on Wednesday. Retalix makes software for grocery stores.
Moody's plans to scrutinize on how any additional debt taken on the deal will affect NCR's ability to cover its other obligations. Analysts also will assess whether Retalix could pose more risks for NCR while the Duluth, Ga.-based company is still trying to digest a $1.2 billion acquisition of Radiant Systems completed last year.
NCR's stock added 16 cents to close Thursday's session at $23.91.
- Investment & Company Information