S&P affirms Micron Technology

Standard & Poor's said it affirmed its BB corporate credit rating on Micron Technology Inc. The outlook is stable.

At the same time, S&P affirmed the issue ratings on all of Micron's senior unsecured debt at BB. The recovery rating remains 3, indicating S&P’s expectation of meaningful (50% to 70%; upper end of the range) recovery in the event of a payment default.

“The rating affirmation follows the company's announcement that it will acquire the remaining approximately 67% stake in Inotera Memories Inc. for approximately $4 billion,” said S&P credit analyst Jenny Chang, in a news release.

S&P expects the transaction will have minimal impact on pro forma leverage as of fiscal year ended Aug. 31. However, the agency expects moderating supply and demand imbalances, weak PC market environment and an elevated capital investment program to fund various technology migrations will likely result in moderately negative free cash flow in 2016.

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