S&P Signals High-Grade Rating on EA Bonds, Risking Debtor Payout

S&P Global Ratings has signaled to some investors privately that it may grant a high-grade rating to $1.5 billion of Electronic Arts bonds, a move that would effectively block debt investors from a lucrative buyout premium.

The ratings firm has told investors that the debt could potentially be rated at that level because of its backing by US Treasury bonds, according to people with knowledge of the matter. The Treasury backing would be the result of a recent maneuver being facilitated by JPMorgan Chase & Co., which would effectively help the buyers of the videogame maker avert a payout ...