S&P rates Infineon BBB

Standard & Poor’s said it assigned a BBB long-term corporate credit rating to Infineon Technologies AG.

The outlook is stable.

The rating reflects Infineon’s satisfactory business risk profile and modest financial risk, S&P said.

Infineon’s business risk is supported by the company’s strong growth track record and well-established positions in selected market segments, the agency said.

Since 1999, Infineon’s annual organic growth rate has averaged about 9% while the semiconductor market has grown by about 5% annually, S&P said.

Infineon’s key segments are expected to continue expanding faster than the overall semiconductor industry in the near to medium term, the agency said. This is owing to the company’s focus on some fast-growing areas, including energy efficiency, mobility and security, S&P said.

These strengths are partly offset by the company’s focus on selected segments of relatively limited size within the much larger semiconductor industry, the agency added.

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