S&P boosts Advanced Micro Devices

Standard & Poor's said it raised its ratings on Advanced Micro Devices Inc. (AMD), including its corporate credit rating to B+ from B, $500 million convert senior debt to B from B- and $600 million senior notes to B from B-.

In addition, the ratings were removed from CreditWatch with positive implications, where they were placed on Jan. 24, 2006. The outlook is stable.

The agency said the rating actions reflect completion of an announced $500 million equity offering at $35.20 per share and the company's improving business and financial profile, notwithstanding aggressive competition.

The ratings continue to reflect aggressive competition from dominant supplier Intel Corp. and possible continued negative free cash flows over the intermediate term, S&P noted.

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