- Following E*Trade's (ETFC +0.4%) plan to reduce debt at the holding company level by a net $340M, Moody's upgrades the company's credit rating to Ba2 from Ba3. the rating outlook is positive for both E*Trade and E*Trade Bank.
- The debt reduction, says Moody's, would be another "significant milestone" in a series of moves demonstrating the company's aim of improving its credit profile.
- The combination of $432M of corporate cash and issuance of $460M of 2023 notes to redeem $800M of 2019 notes will improve the pro-forma debt/EBITDA ratio to 1.6x from 2.0x.