(Reuters) - Moody's said in a statement it might cut Sallie Mae's A2 rating by "multiple notches ... potentially to speculative grade" due to the debt that would be added to the company's balance sheet by the buyout. The rating is currently five notches above "junk" status.
"SLM's financial flexibility as well as debt protection measures for unsecured bondholders would be significantly impaired ... Cash flow coverage measures will be weak," the credit ratings agency said in a statement.
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