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S&P removes Intel's short-term corporate rating from CreditWatch negative

S&P Global Ratings on May 29 removed Intel Corp.'s short-term corporate credit rating of A-1+ from CreditWatch with negative implications, saying the semiconductor giant is expected to maintain "exceptional" liquidity over the next two years.

Also removed from CreditWatch with negative implications were Intel's A-1+ commercial paper ratings, while the A+ corporate credit rating was affirmed with a positive outlook.

"We believe Intel has generally high standing in credit markets and well-established solid relationships with banks as demonstrated by the success in accessing the debt markets on an ongoing basis," S&P said of Intel's liquidity.

The rating agency said Intel's growing cash flow generation and existing cash and investments provide ample coverage over its liquidity uses, including nearly $12.5 billion capital expenditures in fiscal 2018.

Intel's conservative financial policy, which remains unchanged despite changes in U.S. tax law, also supports S&P's assessment on the company's liquidity, according to the rating agency.

S&P placed the short-term corporate credit and commercial paper ratings on CreditWatch with negative implications in March 2017 after Intel announced that it was planning to acquire Israeli technology company Mobileye NV for $15 billion.

The affirmation of Intel's corporate credit rating reflects "good prospects" for continuing product diversification and operating growth overall, S&P said.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.