Moody's ups Micron outlook to stable

Moody's Investors Service said it revised the outlook of Micron Technology Inc. to stable from negative.

The change in outlook reflects Micron's improved performance over the last several quarters in terms of revenue growth, free cash flow generation, financial flexibility; a continued diversification of its product offering and incremental financial and operational benefits likely to stem from the recently announced NAND flash memory joint venture with Intel Corp., the agency said.

Micron continues to maintain the good liquidity and overall financial flexibility that is so critical to withstanding the cyclicality and capital intensity of the volatile semiconductor memory market, the agency said.

Debt levels have remained flat at around $1.1 billion for over two years and could be further reduced this February as the company's $632.5 million 2.5% convertible subordinated note with an $11.79 conversion price relative to a current market price of just over $13 is callable.

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