Fitch rates Intel notes A+

Fitch Ratings said it assigned an A+ rating to Intel Corp.’s $1 billion senior notes issuance in Taiwan.

Intel’s currently has a long-term issuer default rating of A+ and short-term issuer default rating of F1.

The outlook is stable.

The $1 billion 4.9% senior notes offering due Aug. 11, 2045 follows Intel’s $7 billion senior notes offering July 22.

Intel will use net proceeds from the sale of the notes to fund a portion of the $16.7 billion acquisition of Altera Corp., which is expected to close by the end of 2015, Fitch said.

These senior notes will rank pari passu with Intel’s senior unsecured debt and callable annually after two years. Intel may also redeem the senior notes in the event of certain changes in U.S. tax policies, the agency said.

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

Longer term, Altera should strengthen Intel’s offerings in data center and internet of things (IoT) markets, the agency said.

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