S&P lowers STMicroelectronics

Standard & Poor’s said it lowered the long- and short-term corporate credit ratings on STMicroelectronics NV to BBB-/A-3 from BBB/A-2.

The outlook is stable.

The downgrade reflects anticipation that STMicroelectronics’ operating performance will remain subdued over the next two years, partly due to weaker near-term industry demand, volatile revenue growth and continued intense competition, S&P said.

In addition, the agency said it expects the company’s adjusted EBITDA margin to remain lower than 20%, which is below the average profitability of many of its peer companies.

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