Fitch affirms Intel

Fitch Ratings said it affirmed the ratings for Intel Corp., including the long-term issuer default rating at A+ and short-term issuer default rating at F1.

The outlook is stable.

The agency said the ratings and outlook reflect an expectation for solid operating performance for the rating, despite near-term headwinds resulting from postponing the introduction of 10nm products and the anticipation of share gains by Advanced Micro Devices.

Fitch said it expects some profit margin pressures from share shifting but that operating EBITDA margins will remain near 40% resulting in $5 billion to $7 billion of annual free cash flow through the forecast period and providing ample flexibility for tuck-in acquisitions and share repurchases.

Meanwhile, the company's total leverage should remain near 1x over the longer term, absent transformative acquisitions, the agency added.

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