S&P drops Kulicke & Soffa outlook to stable

Standard & Poor's said it revised its outlook on Kulicke & Soffa Industries Inc. to stable from positive, following the company's announcement that it is divesting its wire business and acquiring Orthodyne Electronics.

Ratings on the company, including the B+ corporate credit rating, were affirmed, the agency noted.

While the two transactions will net Kulicke & Soffa about $65 million to $70 million, the agency said it expects volatility of earnings to increase with the absence of the wire unit and the addition of a new bonder business.

According to S&P, the rating on Kulicke reflects expectations for a high level of volatility in sales and profitability levels.

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