Fitch upgrades KLA

Fitch Ratings said it upgraded the long-term issuer default rating and senior unsecured ratings of KLA Corp. to A- from BBB+ on KLA's strengthened financial profile. The outlook is stable.

“The ratings and stable outlook reflect Fitch's expectation for KLA to focus on organic growth and using cash flow for tuck-in deals and capital returns, rather than debt-funded acquisitions in adjacent markets, supporting its strengthened financial profile. Fitch's $1.5 billion-$2 billion average annual FCF through the cycle forecast is up from $1 billion-$1.5 billion, driven by higher base line revenue from strong wafer fab equipment (WFE) demand and elevated profitability from a richer sales mix,” the agency said in a press release.

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