Moody's Downgrades Intel's Credit Rating Amid Profitability Concerns

👉 Key Highlights:

📍 Moody's downgrades Intel's senior unsecured rating to BAA1 from A3.

📍 Rating outlook changed to negative from stable.

📍 Intel's profitability expected to weaken over the next 12-18 months.

📍 Moody's projects Intel's debt-to-EBITDA ratio to reach 7x by end of 2024.

📍 Intel’s debt-to-EBITDA ratio currently at 4.35 for the last 12 months.

📍 Moody's affirmed Intel's Prime-2 short-term commercial paper rating.

📍 Downgrade reflects pressure on Intel's credit profile in the near term.

👉 Context/Background:

Moody's has downgraded Intel's credit rating, citing concerns over the chipmaker's declining profitability. The downgrade to BAA1 reflects expectations of weaker earnings and increased debt, putting pressure on Intel's financial stability. This move highlights the challenges Intel faces as it navigates a difficult market environment.