Moody’s Investors Service placed Tapestry Inc.’s Baa2 rating on review for a possible downgrade on Thursday, after the company said it’s buying Capri, the parent of Michael Kors, for about $8.5 billion in a deal that will be mostly funded with debt.
The move “reflects governance considerations, including the significant increase in debt with the Capri CPRI acquisition and Tapestry’s new leverage target, which will drive a sustained increase relative to the company’s typical under 1x net debt/EBITDA,” Moody’s said in a statement….
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