Fitch cuts KLA-Tenor view to negative

Fitch Ratings said it revised the outlook on KLA-Tencor Corp. to Negative from Stable and affirmed the issuer default rating at BBB and senior unsecured debt at BBB.

The revised outlook reflects expectations that KLA-Tencor's revenues will be meaningfully lower than previously anticipated and potentially result in negative free cash flow for the fiscal year 2009 ending June 30, Fitch said.

Given the current lack of industry visibility, customers continue to push out spending on new process technology transition and the associated services revenues to preserve cash and rebalance supply with demand, the agency said. Kla-Tencor expects to increase accounts receivables reserves due to certain customers experiencing financial distress, Fitch added.

© 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.