Albert, All...news
(Albert, thank you for your posts)
Wednesday October 8 4:24 PM EDT
Moody's revises Advanced Micro credit outlook
(Press release provided by Moody's Investors Service).
NEW YORK, Oct 8 - Moody's Investors Service revised the credit ratings outlook of the senior secured debt of Advanced
Micro Devices, Inc. (AMD) (AMD) to negative from stable based on Moody's expectation that the company will experience
continued difficulty in ramping sufficient units of its critical K6 microprocessor at acceptable speed grades and cost levels.
As a result, Moody's believes that AMD will be challenged to generate operational cash flow sufficient to fund the required
significant investments in its semiconductor fabrication facilities.
Also, the company is expected to continue to consume cash, which stood at $441 million at the end of its third quarter, and
AMD's operational challenges may lead to increased financial leverage and decreased liquidity levels over the intermediate
term.
Moody's noted that all of the rated debt issues are secured by the company's semiconductor facility in Austin, Texas, known
as Fab 25, which is used to manufacture the K6 microprocessor.
The revised ratings outlook affects the following debt: Senior secured -- $400 million outstanding at Ba1 Senior secured bank
term loan -- $250 million outstanding at Ba1 Senior secured bank revolving credit commitment -- $150 million at Ba1.
Advanced Micro Devices, Inc., headquartered in Sunnyvale, California, designs and manufactures microprocessors, flash
memory, programmable logic devices, and other semiconductors products.
biz.yahoo.com |
