S&P Global Ratings raised Advanced Micro Devices Inc.'s issuer credit rating to BB- from B+ and maintained a positive outlook, citing the semiconductor firm's declining leverage and improving balance sheet.

The rating agency said AMD's leverage has fallen to 1.8x as of March 30 from 3.8x in 2017 due to the company's EBITDA growth and sustained debt repayments, including $225 million in the last six months.

The U.S. chipmaker is expected to maintain earnings growth and modest incremental debt repayment, enabling a further decline in leverage to below 1.5x over the next 12 months, warranting another potential ratings upgrade, S&P Global Ratings said.

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