Fitch raises STMicroelectronics

Fitch Ratings said it upgraded STMicroelectronics NV's (ST) long-term issuer default rating to BBB+ from BBB.

“The upgrade reflects ST's strong performance and record of improved cash flow generation capacity while being able to invest in capex. We expect that the company will be able to achieve and sustain pre-dividend free cash flow (FCF) margins in the mid-teens from 2025. This will be supported by improved profitability and lower capex intensity starting from 2025,” the agency said in a press release.

Fitch said it forecasts ST's revenue to grow to $17.2 billion in 2023 from $16.1 billion in 2022. The outlook is stable.

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