OREANDA-NEWS. S&P Global Ratings said today that it has placed all of its unsolicited ratings on Tesla Motors Inc., including our 'B-' corporate credit rating, on CreditWatch with negative implications.

"The CreditWatch placement follows Tesla's announcement that it has agreed to merge with SolarCity in an all-stock transaction, which we expect will meaningful increase the combined entity's debt leverage," said S&P Global credit analyst Nishit Madlani.

We will monitor developments related to the announced transaction and plan to resolve the CreditWatch placement following our review of the sustainability of the company's capital structure in conjunction with its long-term business plan, financial policies, liquidity needs, and access to capital.