Re:Standard & Poor's gives Google the U.S. debt treatment
by nl on Wednesday August 17, 2011 @03:14AM
(#2894443)
Actually, Google did issue bonds earlier this year[1]. The interest they were paying was so cheap it was better than spending cash. They pay 1.25% for a 3 year bond, up to 3.625% for a 10 year bond.
Theoretically I guess Google could care about their S&P credit rating (as opposed to this stock rating) if it made it harder for them to sell them in the future. Judging from how low the rate they had to pay on those bonds I suspect they wouldn't have any trouble selling them anyway.
Their credit rating is very unlikely to drop while they are highly profitable and sitting on a pile of cash though.
Theoretically I guess Google could care about their S&P credit rating (as opposed to this stock rating) if it made it harder for them to sell them in the future. Judging from how low the rate they had to pay on those bonds I suspect they wouldn't have any trouble selling them anyway.
Their credit rating is very unlikely to drop while they are highly profitable and sitting on a pile of cash though.
[1] http://www.reuters.com/article/2011/05/20/us-markets-credit-...