S&P cuts STMicroelectronics

Standard & Poor's said it lowered its long-term corporate credit rating on STMicroelectronics NV to BBB from BBB+.

The agency said it removed the rating from CreditWatch, where it was placed with negative implications on Aug. 27. The outlook is negative.

At the same time, the agency said it affirmed the A-2 short-term rating.

S&P said the downgrade primarily reflects its opinion that the company is likely to report significantly lower revenues, operating margins and free cash flows in 2012 and 2013 than previously expected. This new expectation follows a weakening of operating results that started in the second half of 2011.

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