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REUTERS/Dado Ruvic//File Photo Intel logo is seen near computer motherboard in this illustration taken January 8, 2024.
Reuters
10:20 JST, August 9, 2024
Aug 8 (Reuters) – Moody’s downgraded Intel’s INTC.O senior unsecured rating on Thursday to BAA1 from its earlier A3 rating, citing concerns about the chipmaker’s profitability.
The unsecured ratings outlook has been changed to negative from stable, Moody’s said. It affirmed Intel’s Prime-2 short-term commercial paper rating.
The downgrade, coupled with a change in outlook to negative, highlighted the pressure on Intel’s credit profile in the near term.
“The downgrade of the ratings reflects our expectations for Intel’s significantly weaker profitability over the next 12 to 18 months,” Moody’s said.
It expects Intel’s total ratio of debt to interest, taxes, depreciation, and amortization to “approach 7x” by the end of 2024 and return to 4x by 2025.
Intel currently has a total debt-to-EBITDA ratio of 4.35 for the last 12 months, according to LSEG data.
