S&P Global downgrades Intel's credit rating on slow recovery, management changes
Dec 10 (Reuters) -S&P Global Ratings on Tuesday downgraded chipmaker Intel Corp's INTC.O credit rating to 'BBB' from 'BBB+', on slow business recovery and uncertainty following management changes.
The chipmaking icon's revenue for the first nine months of this year, which was roughly flat year-on-year at $38.84 billion, was below the ratings agency's expectations, S&P Global said.
The departure of CEO Pat Gelsinger, who was critical to the Intel's integrated manufacturing strategy, also adds uncertainty to the execution of the company's turnaround plan, S&P Global said.
"Despite the company's assurances that business strategy will remain largely unchanged, we still assume some level of change under the new CEO, which could add to uncertainty of the timing of the business turnaround," the ratings agency said.
Gelsinger's departure came well before the completion of his four-year roadmap to restore the company's lead in making the fastest and smallest computer chips, a crown it lost to Taiwan Semiconductor Manufacturing Co 2330.TW.
S&P Global, however, kept its company outlook "stable" to reflect its view that Intel will experience growth after a modest recovery next year.
Reporting by Leroy Leo in Bengaluru; Editing by Krishna Chandra Eluri
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
