S&P affirms STMicroelectronics

Standard & Poor's said it affirmed its A- long-term corporate credit rating and its senior unsecured debt ratings on STMicroelectronics NV and removed them from CreditWatch.

The ratings were placed on CreditWatch with negative implications on April 11, following ST's announcement of its intention to combine its wireless semiconductor business with that of NXP BV (B+/negative) to form a joint venture, the agency said, noting that the A-2 short-term rating was affirmed.

The outlook is negative.

S&P added that the affirmation primarily reflects its opinion that, although ST has to make an upfront payment of $1.55 billion to NXP to obtain an 80% stake in the venture and a $350 million cash injection into the venture for working capital, its financial profile remains robust for the ratings.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.