S&P lowers Infineon Technologies to BBB-

S&P said it lowered its long-term issuer and issue credit rating on Infineon Technologies AG and its senior unsecured notes to BBB- from BBB and the rating on its hybrids to BB from BB+ and removed the ratings from CreditWatch.

The outlook is stable.

Infineon Technologies closed the acquisition of Cypress Semiconductor Corp. for a purchase price of about €9 billion.

“Given the deal is mainly debt-funded and that we expect a sharp contraction in semiconductor markets in 2020, we forecast the company's S&P Global Ratings-adjusted leverage will exceed 2.0x until at least fiscal 2021,” S&P said in a news release.

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