Moody’s gives Intel notes A1

Moody’s Investors Service said it assigned an A1 rating to Intel Corp.’s proposed senior unsecured debt offering.

“Intel’s credit profile reflects its leading position in the microprocessor sector and modest financial leverage, with adjusted gross debt to EBITDA likely to remain around 1.1x, which includes a $5.6 billion tax reform liability. The enormous research and development and capital investment needed to extend manufacturing process capabilities and capacity for next generation products represents a consistent call on capital but also a significant barrier to entry. Despite Intel’s market position and strong credit metrics, the rating is constrained by the relatively high operating and technology risk associated with leading edge semiconductor design and manufacturing, and the volatility inherent to the semiconductor sector,” said Moody’s in a press release.

The outlook remains stable.

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