Moody’s cuts Lattice, loan to B2

Moody's Investors Service said it downgraded Lattice Semiconductor Corp.'s ratings, including the corporate family rating to B2 from Ba3, senior secured term loan to B2 from Ba3 and speculative grade liquidity rating to SGL-3 from SGL-2.

The outlook is stable.

The actions were based on the agency’s substantially reduced expectations for revenues and cash flow over the near- to intermediate-term relative to expectations when the ratings were initially assigned.

"Moody's expects breakeven to negative free cash flow and declining liquidity near term as we believe revenues and profitability will remain well below historical performance and our expectations. This reflects a more rapid than anticipated decline in revenues from one of Lattice's largest customers, a slower than anticipated ramp in product wins with Chinese smartphones, and the slower ramp of new 4G base station construction in China," Moody’s senior analyst Terry Dennehy said in a news release.

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