S&P drops AMD to CCC+

Standard & Poor's said it downgraded Advanced Micro Devices Inc.'s corporate credit and senior secured ratings to CCC+ from B, revised the recovery rating on the senior unsecured notes 4 from 3, and removed ratings from CreditWatch, where they were placed on April 8.

The outlook is negative.

"The rating action reflects our view of the risk that current liquidity, at both AMD as a stand-alone entity and the consolidated group, may be insufficient to adequately fund expected near-term operating losses and debt amortization requirements, even giving consideration for future capital investments by Advanced Technology Investment Corp.," S&P analyst Lucy Patricola said in a statement.

Financial support from the company's new partner ATIC, owned by the government of Abu Dhabi, partly offsets this factor, the agency noted.

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