Fitch rates Intel notes A+

Fitch Ratings said it assigned an A+ rating on Intel Corp.’s $5 billion senior notes offering.

Intel will sell a mix of five-, seven- and 10-year notes in part to fund the $16.7 billion acquisition of Altera Corp., which is expected to close by the end of 2015, Fitch said.

The agency said Intel has long-term and short-term issuer default ratings of A+ and F1, respectively.

The outlook is stable.

The ratings reflect a belief that Intel’s operating profile will remain strong and credit protection measures will remain solid, despite the incremental debt issuance to fund the Altera acquisition, Fitch said.

Longer term, Altera should strengthen Intel’s offerings in certain markets, the agency said.

Altera is a leading provider of field programmable logic devices (PLD) with 39% share in the $5 billion PLD market. By combining Intel’s processors and Altera’s PLDs on a lower cost and better performing single die, Intel hopes to accelerate growth in the data center and take market share from application-specific solutions providers in rapidly growing markets, Fitch said.

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