S&P cuts Altera, rates notes BBB+

Standard & Poor's said it lowered its corporate credit rating to BBB+ from A- on Altera Corp. The outlook is stable.

"In addition, we lowered our issue-level rating to BBB+ from A- on the company's $500 million senior unsecured notes due 2017 as a result of the action on the CCR," said S&P credit analyst Andrew Chang in a news release.

At the same time, S&P assigned a BBB+ issue-level rating to the new $1 billion senior unsecured notes, to be issued in two tranches.

The rating action reflects S&P's anticipation that following Altera's new $1 billion debt issuance, it is likely to sustain credit measures in line with a BBB+ corporate credit rating for the intermediate term.

The ratings reflect S&P's anticipation that Altera will maintain its "satisfactory" business risk profile despite industry cyclicality and aggressive competition and its "strong" liquidity profile given its large cash position.

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