Fitch alters Marvell view to stable

Fitch Ratings said it revised the outlook for Marvell Technology Group Ltd. to stable from positive on the company’s announcement it will acquire Inphi Corp. Fitch also affirmed Marvell’s BBB- ratings.

“The ratings and outlook reflect Fitch’s expectation of a continuation of solid operating performance, but that combined revenue growth may fall short of forecasts and provide insufficient profitability and cash flow to return elevated leverage metrics, pro forma for the acquisition, to long-term target levels,” Fitch said in a press release.

“Inphi should add more than $750 million of annual revenue at operating EBITDA margins already in the mid-30%,” the agency said.

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