Fitch affirms Corning

Fitch Ratings said it affirmed Corning Inc.'s issuer default rating, senior unsecured debt rating and senior unsecured credit facility at BBB+.

The outlook is stable.

The agency said the ratings and outlook consider Corning's solid liquidity position, relatively conservative financial policies, significant leadership positions within the active matrix liquid crystal display glass and telecommunications markets and strong manufacturing footprint and intellectual property portfolio.

Concerns center on the significant ongoing capital expenditures required to maintain the company's competitive position within the LCD glass business, the need to achieve constant annual manufacturing cost reductions to offset ongoing LCD average selling price declines, substantial research and development spending required for Corning to generate next-generation product technologies for future revenue streams and ongoing industry excess capacity and uneven demand patterns associated with the telecommunications market, Fitch said.

For the last 12 months ended March 31, the total debt-to-operating EBITDA ratio was about 0.7 times.

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