The Intel logo is displayed on a sign in front of Intel headquarters on July 16, 2025 in Santa Clara, California. <\/p>\n
Justin Sullivan | Getty Images<\/p>\n
Fitch\u00a0downgrading U.S. chipmaker\u00a0Intel’s\u00a0credit\u00a0rating\u00a0by one notch Monday, according to a note by the\u00a0ratings agency, which assigned a negative outlook to\u00a0Intel’s\u00a0rating.<\/p>\n
Fitch\u00a0downgraded<\/a>\u00a0Intel<\/a>\u00a0to BBB from BBB-plus, placing it just two notches shy of junk\u00a0credit\u00a0status.<\/p>\n The downgrade follows\u00a0Fitch’s assessment that Santa Clara, California-headquartered Intel faces heightened\u00a0challenges\u00a0maintaining\u00a0demand\u00a0for its products.\u00a0Fitch\u00a0cited growing competition from peers such as Dutch rival NXP Semiconductors<\/a>, Broadcom Inc<\/a>\u00a0and Advanced Micro Devices<\/a>.<\/p>\n “Credit\u00a0metrics remain weak and will require both stronger end markets and successful product ramps, along with net debt reduction over the next 12-14 months” for Intel to recover its recent\u00a0ratings,\u00a0Fitch\u00a0analysts wrote on Monday.<\/p>\n Fitch\u00a0added that while Intel holds a better market position than other similarly rated peers, its financial structure is relatively weaker and it faces “higher execution risk.”<\/p>\n Intel still enjoys a strong market position in the provision of PCs and traditional enterprise servers,\u00a0Fitch\u00a0noted, while warning the company faces heightened PC competition from Qualcomm<\/a>\u00a0and AMD.<\/p>\n Intel will need to ramp up its PC shipments while also reducing its balance sheet debt to recover its previous\u00a0credit\u00a0ratings,\u00a0Fitch\u00a0said.<\/p>\n The\u00a0ratings agency called\u00a0Intel’s\u00a0liquidity profile “solid,” which as of June 28 consisted of a $21.2 billion mix of cash, cash equivalents and short-term investments, as well as an untapped $7 billion\u00a0credit\u00a0revolver. It also had an undrawn $5 billion, 364-day revolver that will come due in January 2026,\u00a0Fitch\u00a0said.<\/p>\n Fellow\u00a0ratings agency S&P Global\u00a0similarly\u00a0downgraded<\/a>\u00a0Intel’s\u00a0credit\u00a0rating\u00a0to BBB from BBB-plus in December, while Moody’s\u00a0Ratings\u00a0downgraded<\/a>\u00a0its senior unsecured debt’s\u00a0rating\u00a0in August last year.<\/p>\n","protected":false},"excerpt":{"rendered":"The Intel logo is displayed on a sign in front of Intel headquarters on July 16, 2025 in…\n","protected":false},"author":2,"featured_media":46182,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[27605,2158,27604,45,161,49,48,32281,7109,32283,32282,22925,61],"class_list":{"0":"post-46181","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-advanced-micro-devices-inc","9":"tag-breaking-news-technology","10":"tag-broadcom-inc","11":"tag-business","12":"tag-business-news","13":"tag-ca","14":"tag-canada","15":"tag-credit-rating-services","16":"tag-intel-corp","17":"tag-nxp-semiconductors-nv","18":"tag-qualcomm-inc","19":"tag-semiconductor-device-manufacturing","20":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/46181","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=46181"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/46181\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/46182"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=46181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=46181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=46181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}