Moody's raised Micron Technology Inc.'s senior unsecured ratings to Baa3 from Ba2, citing the U.S. chip maker's "significant" deleveraging.

Micron's reported debt fell by 37% to $4.6 billion in the quarter that ended Aug. 30, according to Moody's.

The rating agency said Micron's deleveraging is driven by its EBITDA growth, debt repayment, attainment of cash balance exceeding reported debt, and the company's commitment to maintain its net cash leverage position.

The debt watcher expects Micron to sustain debt to EBITDA at less than 1x over the intermediate term.

As part of the rating action, Moody's also revised its outlook on Micron to stable from positive, reflecting its expectation that the company "will continue to generate strong positive free cash flow, and maintain 100% coverage of cash over reported debt."

With the upgrade of Micron's unsecured ratings, Moody's withdrew the company's corporate family rating of Ba1, among other ratings.