Fitch affirms STMicroelectronics

Fitch Ratings said it affirmed STMicroelectronics' long-term issuer default rating and senior unsecured rating at A-.

The outlook is negative.

The affirmation reflects the company's robust cash flow performance through the industry downturn of 2009 and the increasingly positive results posted by the company in 2010 so far, Fitch said.

The negative outlook reflects the fact that risks remain in the progress at ST-Ericsson, the company's wireless chipset joint venture with Ericsson, the agency said.

As the third-largest supplier of chipsets to the mobile phone industry, revenues in this business have slumped as the company has been investing heavily in new products, which are expected to launch in 2011, Fitch said.

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