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Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: IceShark who wrote (51827)	9/15/2000 8:48:10 AM
From: DJBEINO	Respond to of 53903

Micron Technology Jr Sub Notes Up To B1 From B3: Moody's Thursday, September 14, 2000 01:07 PM NEW YORK -(Dow Jones)- Moody's Investors Service Thursday upgraded the prospective senior unsecured rating of Micron Technology Inc. to (P, news, msgs)Ba1 from (P, news, msgs)Ba3, and its prospective subordinated rating to (P, news, msgs)Ba3 from (P, news, msgs)B2. This concludes a review initiated July 7. The rating outlook is stable, the rating agency said. Moody's said the upgrade reflects the company's position as a leading supplier of dynamic random access memory (DRAM, news, msgs); management's demonstrated ability in leading the company through the sometimes severe industry cycles, from which they have generally emerged as a stronger company; the company's growing diversification of revenues among DRAM components, both by density and architecture; and expectations that strong profitability and cash flow over at least the next year should allow it to internally fund its significant capital expenditures, thus helping to preserve its liquid and lowly levered balance sheet during the upcycle while preparing itself for the inevitable cyclical downturn. Ratings upgraded for Micron Technology Inc. include: Issuer rating of Ba1; Senior unsecured shelf registration rated to (P, news, msgs) Ba1 from (P, news, msgs) Ba3; Subordinated shelf registration rated to (P, news, msgs) Ba3 from (P, news, msgs) B2; The $210 million of junior subordinated notes due 2005 to B1 from B3; The rating agency said that following an extended, nearly four year industry downturn, Micron's notably improved operating performance over the last year derives from the semiconductor industry's long awaited cyclical upturn, in addition to the benefits derived from improving the process manufacturing technologies related to the memory assets acquired from Texas Instruments in 1998. Moody's expects ongoing solid profitability over the next several quarters based on a continuation of good industry supply conditions that will help moderate the normal reductions in average selling prices; Micron's ability to operate consistently as a low cost DRAM designer and producer; as well as ongoing strong demand for memory product by the computing and, increasingly, communications and consumer electronic markets. The rating agency said the new ratings reflect in part the expectations that while the DRAM sector will still go through boom and bust periods driven by the recurring installation and then absorption of excess production capacity, the rationalization of industry participants following the recently ended downcycle should over the foreseeable future help to moderate the severe excess supply conditions that drive downturns. (This story was originally published by Dow Jones Newswires)