Fitch Downgrades Intel to BBB+ From A-

By Stephen Nakrosis

Fitch Ratings on Monday downgraded Intel's Long-Term Issuer Default Rating and senior unsecured ratings to BBB+ from A-, with a stable outlook.

Fitch said the ratings and outlook reflect expectations that Intel's free cash flow margins, adjusted for capital spending offsets, will on average be modestly positive through the forecast period of 2024 to 2027. EBITDA leverage metrics are expected to improve but will remain outside of Fitch's previous negative rating sensitivity through 2026, the company said.

Fitch said it expects structurally higher investment intensity, given the company's plans to regain process technology leadership and build out the foundry services business.

Intel faces competition from rival AMD in both PCs and servers for DCs, but its market share remains strong despite technology challenges, according to Fitch.

Also on Monday, Fitch affirmed Intel's Short-Term IDR and commercial paper rating at F2.

Write to Stephen Nakrosis at [e-mail]

(END) Dow Jones Newswires

07-01-24 1802ET