S&P boosts LSI

Standard & Poor's said it raised its corporate credit rating on LSI Corp. to BB from BB- and removed the rating from CreditWatch, where it was placed with positive implications on March 15.

The outlook is positive.

The ratings increase reflects the completion of its share-funded merger with Agere Systems Inc., with an expected broader business base than the predecessor companies and good free cash flows as a fabless manufacturer, the agency said.

The agency added that its ratings on LSI reflect the company's reliance on a relatively limited customer base and lack of presence in the merchant semiconductor market and somewhat constrained growth and profitability.

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