S&P lowers Spansion

Standard & Poor's said it lowered the corporate credit rating on Spansion Inc. to B- from B.

The outlook is negative.

S&P said the action reflects substantial negative free cash flows and declining liquidity.

Ratings reflect weak profitability and operating cash flow, high leverage and significant debt amortization requirements, the agency said.

These are partially offset by the company's good market position and solid technology base, and its leading edge manufacturing capabilities, the agency noted.

As of Sept. 28, debt-to-EBITDA ratio was 5x.

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