New York, January 27, 2016 -- FedEx Corporation's (Baa1, negative) new share repurchase authorization for 25 million shares, representing almost 10% of its current outstanding shares, is a credit negative development. At the recent per share price of $127, the new authorization represents a call on cash aggregating $3.2 billion, meaningfully above Moody's Investors Service estimates of free cash flow generation for the upcoming 24 months. Moody's believes that additional debt issuance will be required to execute the program, particularly with the upcoming closing of FedEx's acquisition of TNT Express N.V. (Baa2, stable) some time before 30 June 2016. For further information, please see www.moodys.com.

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