(Reuters) – S&P Global Ratings on Tuesday downgraded chipmaker Intel Corp’s credit rating to ‘BBB’ from ‘BBB+’, citing a slow business recovery and uncertainty following a regulatory change.
The chipmaking icon’s revenue for the first nine months of this year, which was flat year-on-year at $38.84 billion, was below the ratings agency’s expectations, S&P Global said.
The departure of CEO Pat Gelsinger, who was key to Intel’s integrated manufacturing strategy, also adds uncertainty to the company’s turnaround plan, S&P Global said.
“Despite the company’s assurance that the business strategy will remain unchanged, we still consider some level of change under the new CEO, which may increase the uncertainty of the business transition period,” the rating agency said.
Gelsinger’s departure came well ahead of the completion of his four-year road to regaining the company’s lead in making faster and smaller computer chips, a crown he lost to Taiwan Semiconductor Manufacturing Co.
S&P Global, however, kept its company “stable” to reflect its view that Intel will see growth after a modest recovery next year.
(Reporting by Leroy Leo in Bengaluru; Editing by Krishna Chandra Eluri)