Moody’s: STMicroelectronics view negative

Moody's Investors Service said it changed the outlook on STMicroelectronics NV’s long-term issuer rating to negative from stable and affirmed the rating at Baa3.

Moody’s said the negative outlook reflects its downward revision to STMicroelectronics’ expected operating performance in 2015. The agency’s 2015 forecasts now include a lower revenue run rate of around $1.8 billion and an adjusted operating profit margin below the mid-single digit range which still implies improvements in profitability over the second half of 2015.

In Moody's opinion, this will limit free cash flow generation after dividends to break-even levels this year.

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