S&P Places Ingram Micro (IM) on CreditWatch Developing Following M&A Deal

Standard & Poor's Ratings Services said it placed its 'BBB-' rating on Ingram Micro Inc. (NYSE: IM), as well as all issue-level ratings on the company's unsecured notes, on CreditWatch with developing implications.

"The CreditWatch placement is based on the announcement on Feb. 17, 2016 that Tianjin Tianhai will acquire Ingram Micro for approximately $6 billion," said Standard & Poor's credit analyst Peter Bourdon.

Upon the close of the merger, Ingram Micro will become part of the HNA Group, a Chinese conglomerate and the largest stockholder of Tianjin Tianhai, and will operate as a subsidiary of Tianjin Tianhai, consolidated under HNA Group. Ingram Micro expects that all lines of businesses and all regional and country operations will continue unaffected by the transaction.

We will resolve the CreditWatch listing upon further review of HNA Group's credit profile, including the potential for any Chinese government-related support, as well as our review of the company's capital structure, financial policy, and business strategy.

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