Moody's: Freescale unaffected

Moody's Investors Service said Freescale Semiconductor, Inc.'s ratings, including the B1 corporate family rating, and negative outlook will not be impacted by the company's announcement that chairman and chief executive officer Michel Mayer has decided to step down.

In December, the agency downgraded Freescale's corporate family and long-term debt ratings, reflecting Freescale's weakened credit profile evidenced by continued high financial leverage, reduced capacity utilization levels and lower earnings prospects over the near term.

The agency said that while management turnover is a concern, Moody's does not believe this will have any immediate impact on the company's credit quality. Moody's noted that Freescale has undergone key management changes recently, with the former head of its troubled wireless unit transitioning to the role of chief development officer and the appointment of a new head of sales and marketing.

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