S&P: Micron convertibles BB-

Standard & Poor's said it assigned a BB- rating and 3 recovery rating to Micron Technology Inc.'s senior unsecured convertible notes due 2043 with a cash put right on Nov. 15, 2028.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The 2043 bonds are in exchange of about $80 million face value of Micron's 2027 notes, $155 million face value of Micron's 2031A notes and $205 million face value of Micron's 2031B notes.

The ratings reflect the company's business focus in highly volatile semiconductor memory markets and the substantial investment required to maintain technology and cost leadership, S&P said.

Leverage is expected to remain at less than 2x over the coming year as the volatile memory sector enjoys favorable market conditions, the agency said, but could spike well above 2x due to market supply and demand volatility.

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