S&P affirms Spansion; outlook down to negative

Standard & Poor's said it affirmed its B corporate credit rating on Spansion Inc. and revised the ratings outlook to negative from stable.

At the same time, S&P said it lowered the issue rating on Spansion LLCs $625 million floating-rate notes due 2013 to B+ from BB- and revised the recovery rating on the issue to 2 from 1.

The agency added that it also affirmed the issue ratings and recovery ratings on the company's unsecured debt, noting that the rating actions reflect expectations that market conditions will prevent material improvement in the company's profitability, pressuring its free cash flows and leading to higher leverage and declining liquidity.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.