Moody's Sees Risk with eBay's (EBAY) Buyback Authorization

Moody's Investors Service said eBay Inc.'s (Nasdaq: EBAY) A2 long-term and Prime-1 short-term ratings are not affected by the additional $5 billion of stock repurchase authorization. Pro-forma debt funding for about half the total, Moody's estimates adjusted debt to EBITDA to remain in the low 1 times range, which is consistent with the rating agency's expectation. However, Moody's views the increased levels of share buybacks as marking a potential shift in eBay's traditionally conservative financial policies.

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